The (mis)allocation of capital

An Analysis the Effect of Capital Taxation on Allocation of Resources: A Dynamic Equilibrium Model Approach

Abstract T he return of capital is fundamental to the intertemporal allocation of resources by changing the consumption behavior and capital accumulation over time. Taxation on return of capital increases the marginal product of capital, meaning that capital stock is lower than when capital is not taxed, which results decreased growth and welfare in steady state. This pape...

Why Should I Share? Examining Social Capital and Knowledge Contribution in Electronic Networks of Practice

Institutions, Financial Development, and Corporate Investment: Toward an Implied Cost of Capital in China’s Emerging Financial Market∗

This study examines the corporate investment behavior during China’s reform era. We apply the Generalized Method of Moments (GMM) estimation to the investment Euler equation models that characterize the Chinese firms’ investment decisions. Based on the estimated structural parameters, we derive the effective discount rate (“implied” cost of capital) perceived by the firm managers to decide inve...

Generating Capital from Social Media

Starting from the notion of the organization as a capital-conversion system, the full article provides organizations with a structured approach for developing a social media strategy that can generate capital out of the apparent chaotic and unmanageable flood of unstructured individual opinions that arrive via social media. The approach links organizational strategy to capital-generation goals ...

Network Effects: The Influence of Structural Capital on Open Source Project Success