Transitional Dynamics of Dividend and Capital Gains Tax Cuts
---- Acknowledgements ----
We thank Alan Auerbach, Christophe Chamley, Simon Gilchrist, Bob King, Anton Korinek, Larry Kotlikoff, and Jim Poterba (AEA discussant), and seminar participants at the Boston University macro lunch, Hong Kong University of Science and Technology, and the 2008 American Economic Association Meeting at New Orleans for helpful comments. This paper is an overhaul of our earlier paper "Dynamic Effects of Permanent and Temporary Dividend Tax Policies on Corporate Investment and Financial Policies." Part of this research was conducted when Miao was visiting Hong Kong University of Science and Technology. The hospitality of this institution is gratefully acknowledged. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.