Monthly Archives: June 2013

Impact of “Substantially Heightened” Capital Requirements on Large Financial Institutions

Posted on June 29, 2013 by ozidar

From Anil Kashyap, Jeremy Stein, and Sam Hanson: ABSTRACT: We examine the impact of “substantially heightened” capital requirements on large financial institutions, and on their customers. Our analysis yields three main conclusions. First, the frictions associated with raising new external equity … Continue reading →

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How to Tax Capital Gains

Posted on June 28, 2013 by ozidar

From Alan Auerbach: The recent controversy over the taxation of “carried interest” (the share of profits that managers of private equity funds, hedge funds and the like commonly receive) demonstrates the problems that can arise from taxing capital gains differently … Continue reading →

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Jeremy Stein on Monetary Policy and “Substantial Progress”

Posted on June 28, 2013 by ozidar

From Jeremy Stein: I view Chairman Bernanke’s remarks at his press conference–in which he suggested that if the economy progresses generally as we anticipate then the asset purchase program might be expected to wrap up when unemployment falls to the … Continue reading →

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Surprisingly Strong Productivity Growth in Unexpected Places

Posted on June 25, 2013 by ozidar

I’ve been spending this week at the UChicago Price Theory camp, which I’d definitely recommend to other graduate students, and wanted to share the following graph from Kevin Murphy. He pointed out that we have seen amazing productivity growth in many … Continue reading →

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Hedge Fund versus CEO Pay

Posted on June 24, 2013 by ozidar

There are many interesting descriptive statistics in this paper by Steven Kaplan and Joshua Rauh, including: Since 2004, the 25 highest paid hedge fund managers have earned more than all of the chief executive officers of the Standard and Poor’s 500 companies … Continue reading →

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Profits without Production

Posted on June 21, 2013 by ozidar

Paul Krugman has an interesting op-ed out today linking economic rents to the pace of the recovery.  Since profits are high while borrowing costs are low, why aren’t we seeing a boom in business investment? And, no, investment isn’t depressed … Continue reading →

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Atkin & Donaldson – Who’s Getting Globalized? The Size and Nature of Intranational Trade Costs

Posted on June 20, 2013 by ozidar

Originally posted on Trade Diversion:
David Atkin and Dave Donaldson are presenting this paper tomorrow afternoon at the NBER summer institute: This paper uses a newly collected dataset on the prices of narrowly defined goods  across many dispersed locations within…

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Can Lower Taxes Be Bought? The Role of Business Rent-Seeking

Posted on June 20, 2013 by ozidar

Robert Chirinko and Dan Wilson have a paper in which they estimate the economic value of $1 corporate donation in terms of lower corporate tax liabilities and find it is worth roughly $6.65. Abstract: The standard model of strategic tax competition assumes that … Continue reading →

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Taxation and the Allocation of Talent

Posted on June 19, 2013 by ozidar

Ben Lockwood, Charles Nathanson and Glen Weyl have a paper on taxation and the allocation of talent that can justify progressive taxation strictly on efficiency grounds based on the following idea. “Low taxes encourage smart students to go into lucrative, … Continue reading →

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