This question may sound fairly elementary, but this is a debate I had with another developer I work with.
I was taking care to stack allocate things where I could, i
I think the lifetime is crucial, and whether the thing being allocated has to be constructed in a complex way. For example, in transaction-driven modeling, you usually have to fill in and pass in a transaction structure with a bunch of fields to operation functions. Look at the OSCI SystemC TLM-2.0 standard for an example.
Allocating these on the stack close to the call to the operation tends to cause enormous overhead, as the construction is expensive. The good way there is to allocate on the heap and reuse the transaction objects either by pooling or a simple policy like "this module only needs one transaction object ever".
This is many times faster than allocating the object on each operation call.
The reason is simply that the object has an expensive construction and a fairly long useful lifetime.
I would say: try both and see what works best in your case, because it can really depend on the behavior of your code.