We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant … when an income tax has to be paid or when a subsidy is paid. We investigate this result further in a range of variations of … the baseline experiment and find our main result to be largely robust. However, as we reduce the number of states of …

We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant … when an income tax has to be paid or when a subsidy is paid. If we combine both a tax and a subsidy, this effect … intensifies. -- tax perception ; risk-taking behavior ; portfolio choice ; distorting taxation ; tax ; subsidy ; behavioral …

with Federal Reserve loans. It finds that subsidy rates on these loans were on average 33.9 percent at origination. In … contrast, by the 3rd quarter of the 2010, there was on average no subsidy in TALF loans. The theoretical model is used to …