business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial …, including private business equity. In a system of simultaneous demand equations in first differences, we identify the tax … effects by an instrumental variables approach exploiting tax reforms during our observation period. To account for selection …

This paper exploits the tax rate variation generated by the Economic Growth and Tax Reconciliation Act of 2001 (which … reduced ordinary income tax rates) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (which reduced capital gains … and dividend tax rates) to estimate the effect of taxes on financial portfolio allocations. Using data from the 1998 and …

different assets. International tax arbitrage has to consider the fact that capital assets located in different countries are … tax them differently. The less diverse these characteristics are, the more elastic portfolio investment reacts with … respect to changes in relative returns or tax differentials. Portfolio managers need to estimate covariances or betas when …

distinguish between Real Tax Effects and Perception Effects when a proportional income tax, with and without a full loss offset … control for the Perception Effects. However, if we consider these effects, we find support for the theory. The isolated …