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dc.contributor.authorAhsan, Syed M.en_US
dc.contributor.authorTsigaris, Panagiotisen_US
dc.description.abstractThe importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However, the potential deadweight losses owing to imperfect offset has not been fully explored. This paper develops a framework whereby that investigation can be carried out and utilizes numerical simulations to investigate the size of potential losses. Results show that when the government and private sector are equally efficient in handling market risk, welfare losses owing to the absence of offset provisions could be substantial. Under plausible assumptions about attitudes towards risk and time preference, and with a capital income tax rate of forty percent, over sixty cents per dollar of tax revenue raised would be dissipated. In contrast, full loss offset would reduce that loss to approximately fourteen cents.en_US
dc.publisherCenter for Economic Studies and Ifo Institute (CESifo) Munichen_US
dc.relation.ispartofseriesCESifo working paper 2203en_US
dc.subject.keywordcapital income taxationen_US
dc.subject.keyworddeadweight lossen_US
dc.subject.keywordloss offset provisionsen_US
dc.subject.stwEntscheidung bei Unsicherheiten_US
dc.titleThe efficiency loss of capital income taxation under imperfect loss offset provisionsen_US
dc.typeWorking Paperen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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