A Reconsideration of Investment Behavior Using Tax Reforms as Natural Experiments

Jason G. Cummins,

JGC

Jason G. Cummins New York University

Kevin A. Hassett, and

KAH

Kevin A. Hassett

R. Glenn Hubbard

R. Glenn Hubbard Dean and Russell L. Carson Professor of Finance and Economics - Columbia Business School

Discussants: Ricardo J. Caballero and

RJC

Ricardo J. Caballero Massachusetts Institute of Technology

Robert E. Hall

Robert E. Hall Robert and Carole McNeil Joint Hoover Senior Fellow and Professor of Economics - Stanford University

ECONOMISTS and policymakers have long been interested in measuring
the effects of changes in the returns to and costs of business fixed investment.
That interest reflects both theoretical and practical concerns,
which have stimulated a large body of empirical research using aggregate
and micro-level data. This literature has reached few unambiguous
conclusions.