Firm heterogeneity and the long-run effects of dividend tax reform
By: Francois Gourio, Jianjun Miao.
Contributors: Miao, Jianjun.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 15044; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15044.
Publisher: National Bureau of Economic Research
Published: 2009
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "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"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/9/2009.

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