Working Papers
Capital Investment and Labor Demand: Evidence from 21st Century Tax Policy (with Mark Curtis, Daniel G Garrett, Eric Ohrn, and Juan Carlos Suárez Serrato), Revision Requested at American Economic Review
- Abstract: We study how tax policies that lower the cost of capital impact investment and labor demand. Difference-in-differences estimates using confidential Census Data on manufacturing establishments show that tax policies increased both investment and employment, but did not stimulate wage or productivity growth. Using a structural model, we find that the primary effect of the policy was to increase the use of all inputs by lowering costs of production and that capital and production workers are complementary inputs in modern manufacturing. Our results show that tax policies that incentivize capital investment do not lead manufacturing plants to replace workers with machines.
Work in Progress
Firm Pay Policy and the Personal Labor Market Experience of U.S. Business Owners Draft coming soon.
The Local Effects of Commercial Gambling Legalization (with Daniel Hartley)
How Does Capital Investment Affect Workers? Evidence from Bonus Depreciation and Matched Employer-Employee Data (with Mark Curtis, Daniel G Garrett, Eric Ohrn, and Juan Carlos Suárez Serrato)