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Allow for dynamic analysis #25

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jdebacker opened this issue Jul 10, 2016 · 0 comments
Open

Allow for dynamic analysis #25

jdebacker opened this issue Jul 10, 2016 · 0 comments
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@jdebacker
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One could allow for a dynamic analysis of the effects of tax policy on METRs by allowing firm financial policy to be endogenous. This could be done by applying an elasticity of debt financing with respect to taxes. de Mooij has research suggesting some possible values for this parameter.
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