Jiang, Lunan


This paper builds an Aiyagari model calibrated to the US economy in the 1930s and shows that the household precautionary saving motives can tremendously mitigate the investment decline possibly caused by the anticipated dividend tax increases during the Great Depression.


Dividend taxes, Precautionary savings, Investment, The U.S. Great Depression

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Jiang, L.: Dividend taxes and investment during the U.S. Great Depression, in: Economics Letters, Vol. 167, pp. 147-151, June 2018