How Do Unexpected E.C.B. And Fed Actions Affect EUR/USD Dynamics?

29 Pages Posted: 10 Nov 2013

See all articles by Aurelie Boubel

Aurelie Boubel

Caisse des Depots et Consignations

Estelle P. Dauchy

Campaign for Tobacco Free Kids

Christelle Lecourt

Facultés Universitaires Notre-Dame de la Paix (FUNDP) - Department of Business Administration

Date Written: September 1, 2001

Abstract

This paper comprehensively calculates corporate intangible assets by industry from 1998 to 2009, and evaluates the impact of expensing intangible assets on the cost of capital, the METR, and the welfare cost of inter-asset taxation, under current law and alternative tax policy including recent policy proposals. It also estimates the welfare cost of 'leveling the playing field'. I find that capitalizing intangible assets can reduce the METR by up to 28 percentage points in finance. The intangible-inclusive welfare cost of inter-asset taxation is twice as large as a conventional measure under current law, and can be much larger than the tax revenue loss of alternative policy. Leveling the playing field may reduce or increase the deadweight loss of inter-asset taxation. The results provide a valuable input for research estimating the impact of investment tax incentives.

Keywords: Central Bank Actions, Expected Interventions, Exchange Rate Dynamics, FI-GARCH Modelling, Market Information

JEL Classification: F31; G14; E58; C32

Suggested Citation

Boubel, Aurelie and Dauchy, Estelle P. and Lecourt, Christelle, How Do Unexpected E.C.B. And Fed Actions Affect EUR/USD Dynamics? (September 1, 2001). Available at SSRN: https://ssrn.com/abstract=2351402 or http://dx.doi.org/10.2139/ssrn.2351402

Aurelie Boubel

Caisse des Depots et Consignations ( email )

Rue de Grenelle
75007 Paris, FRANCE
United States

Estelle P. Dauchy (Contact Author)

Campaign for Tobacco Free Kids ( email )

1400 I Street NW
Suite 1200
Washington, DC New York 20005
United States
5857542532 (Phone)

Christelle Lecourt

Facultés Universitaires Notre-Dame de la Paix (FUNDP) - Department of Business Administration ( email )

Rempart de la Vierge, 8
Namur B-5000
Belgium
+32 81 72 53 02 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
33
Abstract Views
308
PlumX Metrics