Abstract
| Original language | English |
|---|---|
| Journal | Review of Finance |
| Volume | 19 |
| Issue number | 2 |
| Pages (from-to) | 823-863 |
| Number of pages | 41 |
| ISSN | 1572-3097 |
| DOIs | |
| Publication status | Published - 2015 |
Cite this
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Taxation, Transfer Income and Stock Market Participation. / Fischer, Marcel; Astrup Jensen, Bjarne.
In: Review of Finance, Vol. 19, No. 2, 2015, p. 823-863.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Taxation, Transfer Income and Stock Market Participation
AU - Fischer, Marcel
AU - Astrup Jensen, Bjarne
PY - 2015
Y1 - 2015
N2 - This article studies the impact of a redistributive tax system on consumption, portfolio decisions, and asset prices in a dynamic general equilibrium model. Poorer agents, which receive more in transfers than they pay in taxes, optimally reduce their exposure to equity, because the transfer income they receive is subject to stock market risk. This article thus provides a novel explanation for the low stock market participation rates of poorer investors.
AB - This article studies the impact of a redistributive tax system on consumption, portfolio decisions, and asset prices in a dynamic general equilibrium model. Poorer agents, which receive more in transfers than they pay in taxes, optimally reduce their exposure to equity, because the transfer income they receive is subject to stock market risk. This article thus provides a novel explanation for the low stock market participation rates of poorer investors.
UR - http://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=111082135093056&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes
U2 - 10.1093/rof/rfu008
DO - 10.1093/rof/rfu008
M3 - Journal article
VL - 19
SP - 823
EP - 863
JO - Review of Finance
JF - Review of Finance
SN - 1572-3097
IS - 2
ER -