CORDIS Project
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This project investigates how taxes impact corporate debt and systemic risk through dynamic structural models. It combines theoretical analysis with empirical testing to assess the relationship between tax policies and corporate financing decisions.
There are three components to this project:
Theory;
Empirical Testing; and Dissemination.
All components are linked to the current policy question of how taxes influence debt and systemic risk, and all use novel dynamic structural models. I am unique in explicitly linking such models to empirical testing.Theory: “Learning, Capital Structure and Systemic Risk.” Standard dynamic structural models of financing assume firms know the stochastic process governing cash flow. I will first consider a par…
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