Title of article
Dividend andcapitalgainstaxationunderincompletemarkets
Author/Authors
Alexis Anagnostopoulos، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
13
From page
599
To page
611
Abstract
MotivatedbytheJobsandGrowthTaxReliefReconciliationAct(JGTRRA)of2003,the
effectsofcapitalincometaxcutsareinvestigatedinaneconomywithheterogeneous
householdsandarepresentative,maturefirm.Dividendtaxcuts,contrarytocapital
gains taxcuts,leadtoadecreaseininvestmentandcapital.Thisisbecausethey
increasethemarketvalueofexistingcapitalandhouseholdsrequireahigherreturnto
hold thisadditionalwealth.Inlinewithempiricalevidence,themodelpredicts
substantialincreasesindividendsandstockprices.Overall,thetaxcutsleadtoa
welfarereductionequivalenttoaconsumptiondropof0.5
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846545
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