Corporate Taxes, Leverage, and Business Cycles
João Gomes (gomesj@wharton.upenn.edu),
Amir Yaron and
Brent Glover
Additional contact information
Amir Yaron: The Wharton School, University of Pennsylvania and NBER
Brent Glover: The Wharton School, University of Pennsylvania
No 1261, 2010 Meeting Papers from Society for Economic Dynamics
Abstract:
the consequences of this policy for economy-wide quantities such as investment and consumption. Contrary to conventional wisdom we find that changes in tax policy have only a small effect on equilibrium levels of corporate leverage. The intuition lies in the endogenous adjustment of debt prices in equilibrium that make debt relatively more attractive and largely offset the effect of the changes in tax policy.
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2010/paper_1261.pdf (application/pdf)
Related works:
Working Paper: Corporate Taxes, Leverage, and Business Cycles
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:1261
Access Statistics for this paper
More papers in 2010 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann (chuichuiche@gmail.com).