2026-04-17T19:43:04Zhttps://recercat.cat/oai/request

oai:recercat.cat:10230/686932025-12-18T01:49:26Zcom_2072_6col_2072_452953

00925njm 22002777a 4500 dc Baley, Isaac author Blanco, Andrés author 2024-11-14T10:10:16Z 2024-11-14T10:10:16Z 2022-01-13 2024-11-14T10:08:22Z We investigate the long-run effects of permanent corporate tax reforms on aggregate capital behavior. In an investment model with fixed adjustment costs and partial irreversibility, we show that corporate taxes and investment frictions jointly determine three interconnected macroeconomic outcomes: (i) capital allocation, (ii) capital valuation, and (iii) capital fluctuations around steady-state. Using corporate tax and firm-level investment data from Chile, we discover that a lower corporate income tax improves the allocation of capital, reduces capital valuation, and accelerates capital fluctuations. corporate taxes investment frictions fixed adjustment costs irreversibility lumpiness capital misallocation tobin’s q transitional dynamics inaction propagation Macroeconomics and International Economics The long-run effects of corporate tax reforms