This article investigates the effect of tax reform from the viewpoint of regime switching and finds that, following a tax-reform announcement with constant government spending, the key factor determining the ad...
Regime switchingdynamic debt policytax benefitsbankruptcy costsagency conflictsrefinancing(2016). Value of tax benefits of a dynamic debt policy with regime switching. Applied Economics Letters. Ahead of Print. doi: 10.1080/13504851.2016.1240327doi:10.1080/13504851.2016.1240327Dothan, Michael...
regime switchingCapital gains taxation has important implications for investors' portfolio choice decisions. To explore these implications, we develop a continuous time investment and consumption model with capital gains tax, Epstein-Zin recursive utility, and regime switching. We find that various factors...
carbon taxregime switchingThis paper develops a model of a profit maximizing firm with the option to exploit a non-renewable resource, choosing the timing and pace of development. The resource price is modelled as a regime switching process, which is calibrated to oil futures prices. A Hamilton...
Carbon taxRegime switchingThis paper develops a model of a profit maximizing firm with the option to exploit a non-renewable resource, choosing the timing and pace of development. The resource price is modelled as a regime switching process, which is calibrated to oil futures prices. A Hamilton...