Home » Impact of Research and Development Tax Incentives on Colombias Manufacturing Sector: What Difference Do They Make? by Valerie Mercer-Blackman
Impact of Research and Development Tax Incentives on Colombias Manufacturing Sector: What Difference Do They Make? Valerie Mercer-Blackman

Impact of Research and Development Tax Incentives on Colombias Manufacturing Sector: What Difference Do They Make?

Valerie Mercer-Blackman

Published May 9th 2014
ISBN : 9781282841291
ebook
53 pages
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 About the Book 

Uncertainty about the riskiness of new financial products was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateralMoreUncertainty about the riskiness of new financial products was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateral constraint in which agents learn by observation the true riskiness of a new financial environment. Early realizations of states with high ability to leverage assets into debt turn agents optimistic about the persistence of a high-leverage regime. The model accounts for 69 percent of the household debt buildup and 53 percent of the rise in housing prices during 1997-2006, predicting a collapse in 2007.