This note develops a behavioral explanation for the existence of an asymmetric tax treatment of gains and losses when investors are loss averse. We find that loss offset rules should be more restrictive for investors which are (1) more risk averse in case of gains, (2) less risk seeking in case...

This paper develops a utility-based explanation for the existence of an asymmetric tax treatment of gains and losses when investors are loss averse. We find that loss offset rules should be more restrictive for investors which are (1) more risk averse in case of gains, (2) less risk seeking in...

This article develops a utility-based explanation for the existence of an asymmetric tax treatment of gains and losses when investors are loss averse. The authors find that loss offset rules should be more restrictive for investors which are (1) more risk averse in case of gains, (2) less risk...