I develop and calibrate an industry equilibrium model with heterogeneous multinational firms to study the impact of a potential policy change from the current U.S. worldwide taxation system to a territorial system on firm investment, capital structure, payout policy and tax revenues. Firms in...

In this paper we argue that government procurement policy played a role in stimulating the wave of innovation that hit the US economy in the 1980's, as well as the simultaneous increase in inequality and in education attainment. Since the early 1980's U.S. policy makers began targeting...