This research examines capital income taxation for a loss averse investor under some acceptable in the literature … the attractive full loss offset provisions. However, risk taking can be stimulated if the investor interprets part of the … tax as a loss instead as a reduced gain. Then investor becomes risk seeking and moves away from the discomfort zone of …

financial decisionmaking. In this paper we present a simple model based on loss aversion that can accommodatefor all of these …

Value at Risk (VaR) is defined as the worst expected loss under normal market conditions over a specific time interval …