Cost-of-Capital-Calculator icon indicating copy to clipboard operation
Cost-of-Capital-Calculator copied to clipboard

Published 20 hours ago • verified publisher icon PSLmodels

Allow for dynamic analysis

Open jdebacker opened this issue 8 years ago • 0 comments

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.

jdebacker avatar Jul 10 '16 10:07 jdebacker