This paper examines the migration response to a millionaire tax in New Jersey, which raised its income tax rate on top earners by 2.6 percentage points to 8.97 percent, one of the highest tax rates in the country. Drawing on unique state tax micro-data, we estimate the migration response of millionaires to the rate increase, using a difference-in-differences estimation strategy. The results ind...

Conley and Wilkie (1993) introduced and axiomatized the Nash extension bargaining solution, defined on a domain of comprehensive but not necessarily convex problems. In this paper we present a non-cooperative game that implements the Nash extension solution in subgame perfect equilibria in the limit as the discount rate applied between rounds of play vanishes. Journal of Economic Literature Cla...

This paper tests pair-wise causal relationships between uncertainty, returns and investment using unbalanced panel data of the 13 insurance companies listed in the KSE for the period from 1996 to 2008. Volatility of returns from the daily stock was measured using the GARCH (p, q) for appropriate values of p and q. The study applied panel data models in the lines of common constants, fixed effec...

The paper investigates the empirical significance of revenue management in determining firm-level fixed capital investment when investment opportunities are controlled for by two of the recently-introduced empirical fundamentals: profitability shocks and the gap measure between the desired and actual capital stocks (mandated investment rate). Tobin's q is also included in the analyses for the p...

Wepresent an analytically tractable dynamic stochastic general equilibrium model that incorporates micro-level fixed and convex adjustment costs. We provide an explicit characterization of equilibrium dynamics by a system of nonlinear stochastic difference equations. We provide general conditions under which our model features investment lumpiness at the microeconomic level, but aggregate dynam...

We solve equilibrium models of lumpy investment wherein establishments face persistent shocks to common and plant-specific productivity. Nonconvex adjustment costs lead plants to pursue generalized (S,s) decision rules with respect to capital; as a result, their individual investments are lumpy. In partial equilibrium, this yields substantial skewness and kurtosis in aggregate investment, thoug...