Taxation, Investment, and Firm Growth with Heterogeneous Capital

Jason Cummins () and M. Dey

Working Papers from C.V. Starr Center for Applied Economics, New York University

Abstract: Capital heterogeneity has largely been ignored in studies of investemtn behaviour. We estimate a dynamic structural model in which different types of capital are interrelated in both the production and adjustment cost technologies. Our result help explain some of the empirical failings of the neoclassical model. We show that when capital heterogeneity is ignored estimates of the adjustment costs are biased upward, and estimates of factor substitution in production are biased downward.

Keywords: PRODUCTION; INVESTMENTS; CAPITAL GOODS (search for similar items in EconPapers)
JEL-codes: D24 E22 E23 (search for similar items in EconPapers)
Pages: 37 pages
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (6)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:cvs:starer:98-07

Ordering information: This working paper can be ordered from
C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012

Access Statistics for this paper

More papers in Working Papers from C.V. Starr Center for Applied Economics, New York University C.V. Starr Center, Department of Economics, New York University, 19 W. 4th Street, 6th Floor, New York, NY 10012. Contact information at EDIRC.
Bibliographic data for series maintained by Anne Stubing ( this e-mail address is bad, please contact ).