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equilibrium economy with uninsurable investment risks. It has been shown that, with uninsurable investment risks, under …
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making an investment decision. While learning from prices always improves investment efficiency, we identify a novel channel … by which it can reduce welfare. Namely, investment decisions change the stock’s exposure to underlying shocks and …, consequently, investors’ ability to hedge risk. We show that this is a robust feature of general investment decisions, and outline …
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cause investment to rise or fall. …
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cause investment to rise or fall. …
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This paper analyzes the effects of time-consistent capital taxation on the level of capital and welfare. We find that a commitment to a zero capital tax shifts the time inconsistency problem towards labor taxes and the provision of public consumption. By comparing the worst time-consistent...
Persistent link: https://www.econbiz.de/10013105059
taxation (household savings, business capital formation, residential housing investment and pension/life insurance asset …
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