Spain has recently concluded a process of wide-ranging reform of its personal income tax (IRPF), in force since 1992. The new IRPF is applicable from 1999 onward. The aim of this article is to analyse the implications of this tax reform for the distribution of personal income, and additionally...

Using a sample of 5962 Spanish households from the Survey of Household Finances (EFF) undertaken by the Bank of Spain, this article describes the structure of their portfolio, and estimates both a Probit model and a Tobit model to test how taxation affects, respectively, the decision to invest...