This paper focuses on the effects of marginal tax rates, wealth, income, and a set of socioeconomic and demographic variables on the portfolio composition of households using detailed micro data on 2,000 Swedish households. In particular, efforts are made to disentangle the effects of marginal...

This paper uses micro data on more than 3,000 Swedish households to investigate the effects of taxes on portfolio composition. The results indicate that marginal tax rates have substantial effects on household portfolio choice, and that the common procedure of focusing on the behavior of the...

We examine how tax avoidance in the form of trade in well-functioning asset markets affects the basic labor supply model. We argue that models that integrate tax arbitrage and labor supply decisions may shed light on a number of positive and normative questions concerning modern systems of...

In this paper, we analyze government budget balance within a simple model of endogenous growth. For the AK model, simple analytical conditions for a tax cut to be self-financing can be derived. The critical variable is not the tax rate per se, but the ?transfer-adjusted? tax rate. We discuss...