Online Appendix to "Transitional Dynamics of Dividend and Capital Gains Tax Cuts"

In this appendix, we present the details of the extended model with debt in our paper "Transitional Dynamics of Dividend and Capital Gains Tax Cuts." Section 1 presents the extended model and results. Section 2 presents the numerical algorithm to solve this model. Section 3 presents an extensiongure for the simulation conducted in Section 3 of our original paper.additional

Investment Spikes: New Facts and a General Equilibrium Exploration

Using plant-level data from Chile and the U.S. we show that investment spikes are highly pro-cyclical, so much so that changes in the number of establishments undergoing investment spikes (the "extensive margin") account for the bulk of variation in aggregate investment. The number of establishments undergoing investment spikes also has independent predictive power for aggregate investment, even controlling for past investment and sales. We re-calibrate the Thomas (2002) model (that includes fixed costs of investing) so that it assigns a prominent role to extensive adjustment. The recalibrated model has different properties than the standard RBC model for some shocks.

Credit Risk and Disaster Risk

Corporate credit spreads are large, volatile, countercyclical, and significantly larger than expected losses, but existing macroeconomic models with financial frictions fail to reproduce these patterns, because they imply small and constant aggregate risk premia. Building on the idea that corporate debt, while safe in normal times, is exposed to the risk of economic depression, this paper embeds a trade-off theory of capital structure into a real business cycle model with a small, time-varying risk of large economic disaster. This simple feature generates large, volatile and countercyclical credit spreads as well as novel business cycle implications. In particular, financial frictions substantially amplify the effect of shocks to the disaster probability.

Transitional Dynamics of Dividend and Capital Gains Tax Cuts

We develop a dynamic general equilibrium model to study the impact of the 2003 dividend and capital gains tax cuts. In the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital adjustment costs, equity issuance costs, and collateral constraints. We show that when the dividend and capital gains tax cuts are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to distribute large dividends initially in response to the temporary dividend tax cut. We also find that the effects of a temporary dividend tax cut are very different from those of a temporary capital gains tax cut.

Firm Heterogeneity and the Long-run Effects of Dividend Tax Reform

To study the long-run effect of dividend taxation on aggregate capital accumulation, we build a dynamic general equilibrium model in which there is a continuum of firms subject to idiosyncratic productivity shocks. We find that a dividend tax cut raises aggregate productivity by reducing the frictions in the reallocation of capital across firms. Our baseline model simulations show that when both dividend and capital gains tax rates are cut from 25 and 20 percent, respectively, to the same 15 percent level permanently, the aggregate long-run capital stock increases by about 4 percent.

International Risk Cycles

Recent work in international finance suggests that the forward premium puzzle can be accounted for if (1) aggregate uncertainty is time-varying, and (2) countries have heterogeneous exposures to a world aggregate shock. We embed these features in a standard two-country real business cycle framework, and calibrate the model to match the differences between low and high interest rates countries. Unlike traditional real business cycle models, our model generates volatile exchange rates, a large currency forward premium, "excess comovement'' of asset prices relative to quantities, and an imperfect correlation between relative consumption growth and exchange rates. Our model implies, however, that high interest rate countries have smoother quantities, equity returns and interest rates than low interest rate countries, contrary to the data.

« Nos traces prennent langue »

Cet article propose la comparaison de trois démarches et œuvres poétiques de langue française s’étant portées, dans les années 1950-1970, vers les supports matériels : la pierre pour Yves Bonnefoy (Pierre écrite), le bois pour René Char (La Nuit talismanique), la neige pour Christian Dotremont (Logbook). Poètes gagnés en ces années par une conscience aiguë de la finitude, tous trois se rejoignent dans la recherche d’une incarnation des signes verbaux dans la matière brute. L’épaisseur du matériau s’y prolonge ensuite dans l’exploration d’une épaisseur temporelle, transposée dans certains choix de l’écriture poétique. L’étude s’attache alors aux effets, sur le sujet, de ce dialogue muet avec la pierre, le bois ou la neige : la fragilité existentielle y est non pas sublimée, mais bien éprouvée, c’est-à-dire soumise à l’épreuve de la matière.This article proposes the comparison between three approaches and poetic works written in French in the 1950s–1970s and having develop about material supports: the stone for Yves Bonnefoy (Words in Stone), the wood for René Char (The Talisman Night), the snow for Christian Dotremont (Logbook). These three poets, taken in these years by an acute awareness of finitude, meet in the research of an incarnation of verbal signs in raw matter. The thickness of the material is there extended by the exploration of a temporal thickness, carried by certain choices in the poetic writing. The study focuses then on the effects, on the subject, of this silent dialogue with the stone, the wood and the snow: the existential fragility is not here magnified, but experienced, namely subjected to the experience of the material

Introduction

Que le grain de la matière soit réellement convoqué dans certaines pratiques de la poésie in situ, ou qu’il soit rêvé dans le texte lui-même, l’intérêt suscité par la matière élémentaire dans la poésie contemporaine relève du paradoxe : la scène contemporaine de l’écriture poétique est visitée par un imaginaire archaïque venu d’un temps difficilement situable, celui des inscriptions ou des empreintes qui, des épitaphes funéraires aux initiales entrelacées des amants gravées dans l’écorce, por..

Search for production of strangelets in quark matter using particle correlations

We present a new technique for observing the strangelet production in quark matter based on unlike particle correlations. A simulation is presented with a two-phase thermodynamical model

Introduction

S’attacher aux résonances de l’art pariétal dans les littératures des XXe et XXIe siècles est sans doute, aussitôt, se tenir dans l’étau d’une contradiction : au désir d’introduire à la fascination partagée des écrivains pour les fresques du Paléolithique, s’oppose le danger de céder à une conception exclusivement thématique de l’œuvre littéraire ; à la fraîcheur d’une rencontre vive, le risque d’ouvrir les pages d’un livre d’images en voie de patrimonialisation. Les mains de Pech Merle, l’ho..