Animated figures, similar to Figures 1-3 in the paper, show the sensitivity of the analysis to varying specifications of the adjustment cost parameters of the model. Clicking on the links below should initiate the animations.
1. Changes in the Taxation of Labor:
How the Response of Factor Prices
Depends on the Mobility of
(a) Labor.
(b) Capital.
2. Changes in the Taxation of Capital:
How the Response of
Factor Prices Depends on the Mobility of
(a) Labor.
(b) Capital.