Empirical models of capital accumulation estimated on aggregate data series are based on the assumption that capital asset types respond in the same way to cost variables. Likewise, aggregate models do not consider potential heterogeneity in investment behavior originating on the demand side for...

This paper examines whether hypothetical macroeconomic insurance schemes of various kinds could improve the degree of cyclical income stabilisation in the euro area. We review the potential issues, the underlying trade-offs and the necessary conditions for such schemes to work efficiently. The...

This paper analyzes the implications of foreign firm ownership and international profit shifting through thin capitalization for corporate tax policy. We consider a model of interjurisdictional tax competition where the corporate tax serves as a backstop to the personal income tax, interest on...