【Brownbag】The Macroeconomics of Capital Durability
2026/03/13
研討會日期 : 2026-03-13
時間 : 12:10
主講人 : Professor Hui-Jun Chen (陳惠鈞)
地點 : Conference Room B110
演講者簡介 : Professor Hui-Jun Chen received his Ph.D. in Economics from the Ohio State University in 2025. He is currently an Assistant Professor at National Tsing Hua University. His research fields are Macroeconomics and International Economics.
演講摘要 : We study capital allocation and capital dynamics in an investment model with idiosyncratic productivity shocks, financial frictions, investment tax policies, and heterogeneous capital durability as measured by depreciation rates. The model shows that the interaction between financial frictions and investment tax policies distorts the cross-sectional and intertemporal allocation of capital durability. More specifically, financially more constrained firms prefer less durable capital because it receives smaller immediate tax deductions; moreso during financial downturns. We validate the above mechanism using U.S. microdata and policy variations, including both the anti-recharacterization laws and bonus depreciation provisions. Taking the model to the microdata, we find that the above mechanism amplifies capital misallocation and prolongs the financial crisis by reducing equilibrium capital durability. Finally, we show that targeted investment tax policies, such as accelerated depreciation for durable capital, can ease capital misallocation and support faster recovery from financial downturns.
