Economists have widely varying opinions of how corporate taxation affects aggregate investment, output, and wages. This … disagreement reflects a 60-year history of misapplication of the neoclassical theory of investment to interpret empirical work and … guide policy analysis. In this article I reconsider the accumulated evidence relating tax policy to firm investment through …

with firm-level accounting information for 2002-2004, this paper examines the presence of systematic distortions in capital … systematic comparison of investment efficiency among wholly and partially state-owned, wholly and partially foreign-owned, and …

basis points, research and development (R&D) spending declines by about 1 to 3 percent and venture capital (VC) investment …

discount rates and thereby raise real investment. We analyze the macroeconomic implications of sticky discount rates using a … New Keynesian model. The model naturally generates investment-consumption comovement in response to household demand … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects …

We compare the investment of standalone firms across regions after a positive shock to the investment opportunities … generated by a large-scale highway development project. We show that the standalones' investment sensitivity is lower in regions …

We create a firm-level ChatGPT investment score, based on conference calls, that measures managers' anticipated changes … survey responses. The investment score predicts future capital expenditure for up to nine quarters, controlling for Tobin's q … and other determinants, implying the investment score provides incremental information about firms' future investment …

We argue that managerial overconfidence can account for corporate investment distortions. Overconfident managers … overestimate the returns to their investment projects and view external funds as unduly costly. Thus, they overinvest when they … have abundant internal funds, but curtail investment when they require external financing. We test the overconfidence …

stock market bubble by issuing new equity. The bubble reduces the user-cost of capital and increase real investment. Using … real investment …

In this article we develop a model to analyze patent-protected R&D investment projects when there is (imperfect …. These benefits to society are countered by increased total investment costs in R&D and lower aggregate value of the R …&D investment projects …

We examine the investment decision problem of a group whose members have heterogeneous time preferences. In particular … exponential discounting for their collective investment decisions even if all agents discount exponentially. We also exhibit …