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  • Ghilardi and Zilberman (2024 EL)

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Dividend Taxation and Financial Business Cycles

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Dividend Taxation and Financial Business Cycles. / Ghilardi, Matteo F. ; Zilberman, Roy.
In: Economics Letters, Vol. 238, 111709, 31.05.2024.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Ghilardi, MF & Zilberman, R 2024, 'Dividend Taxation and Financial Business Cycles', Economics Letters, vol. 238, 111709. https://doi.org/10.1016/j.econlet.2024.111709

APA

Ghilardi, M. F., & Zilberman, R. (2024). Dividend Taxation and Financial Business Cycles. Economics Letters, 238, Article 111709. Advance online publication. https://doi.org/10.1016/j.econlet.2024.111709

Vancouver

Ghilardi MF, Zilberman R. Dividend Taxation and Financial Business Cycles. Economics Letters. 2024 May 31;238:111709. Epub 2024 Apr 24. doi: 10.1016/j.econlet.2024.111709

Author

Ghilardi, Matteo F. ; Zilberman, Roy. / Dividend Taxation and Financial Business Cycles. In: Economics Letters. 2024 ; Vol. 238.

Bibtex

@article{60934bd788584aaea322154b120a92cc,
title = "Dividend Taxation and Financial Business Cycles",
abstract = "We examine the interactions between different dividend tax systems and financial shocks in a dynamic stochastic general equilibrium (DSGE) model with an occasionally-binding investment credit limit. We show that dividend taxes largely determine the collateral value of assets, thereby occasionally distorting investment decisions and altering the propagation of financial shocks. Permanently lower dividend taxes dampen financially-driven business cycles in a state-contingent fashion. They also help explain substantial macroeconomic asymmetries following equally-sized expansionary and contractionary financial shocks.",
keywords = "Occasionally-Binding Borrowing Constraints, Investment, Asset Prices, Financial Shocks",
author = "Ghilardi, {Matteo F.} and Roy Zilberman",
year = "2024",
month = apr,
day = "24",
doi = "10.1016/j.econlet.2024.111709",
language = "English",
volume = "238",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Dividend Taxation and Financial Business Cycles

AU - Ghilardi, Matteo F.

AU - Zilberman, Roy

PY - 2024/4/24

Y1 - 2024/4/24

N2 - We examine the interactions between different dividend tax systems and financial shocks in a dynamic stochastic general equilibrium (DSGE) model with an occasionally-binding investment credit limit. We show that dividend taxes largely determine the collateral value of assets, thereby occasionally distorting investment decisions and altering the propagation of financial shocks. Permanently lower dividend taxes dampen financially-driven business cycles in a state-contingent fashion. They also help explain substantial macroeconomic asymmetries following equally-sized expansionary and contractionary financial shocks.

AB - We examine the interactions between different dividend tax systems and financial shocks in a dynamic stochastic general equilibrium (DSGE) model with an occasionally-binding investment credit limit. We show that dividend taxes largely determine the collateral value of assets, thereby occasionally distorting investment decisions and altering the propagation of financial shocks. Permanently lower dividend taxes dampen financially-driven business cycles in a state-contingent fashion. They also help explain substantial macroeconomic asymmetries following equally-sized expansionary and contractionary financial shocks.

KW - Occasionally-Binding Borrowing Constraints

KW - Investment

KW - Asset Prices

KW - Financial Shocks

U2 - 10.1016/j.econlet.2024.111709

DO - 10.1016/j.econlet.2024.111709

M3 - Journal article

VL - 238

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

M1 - 111709

ER -