In this article we describe how reimbursement cost-effectiveness thresholds, per unit of health benefit, whether set explicitly or observed implicitly via historical reimbursement decisions, serve as a signal to firms about the commercial viability of their R&D projects (including candidate...

Real Estate Investment Trusts (REITs) pay no corporate taxes, yet surprisingly, their average leverage ratio is more than twice that of taxable firms (46% vs. 20%). We develop and test a model that helps explain this puzzle. The primary result of the model is that credit constrained firms'...