Firm Heterogeneity and the Long-Run Effects of Dividend Tax Reform
What is the long-run effect of dividend taxation on aggregate capital accumulation? To address this question,we build a dynamic general equilibrium model in which there is a continuum of ˉrms subject to idiosyncratic productivity shocks. This ˉrm heterogeneity generates a cross-sectional distribution of ˉrms,with some ˉrms behaving according to the traditional view of dividend taxation and other ˉrms behaving according to the new view of dividend taxation. Speciˉcally,at any point in time,a ˉrm may lie in one of three ˉnance regimes: dividend distribution regime,liquidity constrained regime,and equity issuance regime. These ˉnance regimes may change over time in response to idiosyncratic productivity shocks. Firms in di?erent ˉnance regimes respond to dividend taxation in di?erent ways. Our 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 3 percent.
firm heterogeneity general equilibrium finance regime traditional and new views of dividend taxation
Francois Gourioy Jianjun Miaoz
Department of Economics,Boston University,270 Bay State Road,Boston MA 02215 Department of Economics,Boston University,270 Bay State Road,Boston,MA 02215
国际会议
成都
英文
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）