DAI, ZHONGLAN; MAYDEW, EDWARD; SHACKELFORD, DOUGLAS A.; … - In: Journal of Finance 63 (2008) 2, pp. 709-742
This paper demonstrates that the equilibrium impact of capital gains taxes reflects both the capitalization effect (i.e., capital gains taxes decrease demand) and the lock-in effect (i.e., capital gains taxes decrease supply). Depending on time periods and stock characteristics, either effect...