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dc.contributor.authorRapp, Marc Steffenen_US
dc.contributor.authorSchwetzler, Bernharden_US
dc.date.accessioned2011-07-18T08:59:20Z-
dc.date.available2011-07-18T08:59:20Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/48419-
dc.description.abstractWe are interested in the effect of capital income taxes upon security prices when investors face locally segmented stock markets and a global bond market. Therefore, we analyze an equilibrium model of an economy with binomial uncertainty, an exogenous risk-free interest rate and a representative stand-in household. In this setting, the pricing effect for domestic securities is shown to be a function in three determinants: the covariance between pre-tax payoffs of securities and the aggregated market portfolio, the exogenous pre-tax interest rate and the effect of taxation (and redistribution) on the aggregate welfare of the stand-in household. We find that taxation of capital income is nondistorting if tax proceeds are immediately redistributed within the cohort of capital market participants. If, however, taxation represents a policy tool to transfer wealth from capital market participants to non-market participants, the level of the statutory tax rate is reflected in equilibrium security prices and taxation affects households portfolio decisions, which in turn may affect investment decision of firms.en_US
dc.language.isoengen_US
dc.publisherCenter for Entrepreneurial and Financial Studies (CEFS) Munichen_US
dc.relation.ispartofseriesCEFS working paper series 2008-08en_US
dc.subject.jelG12en_US
dc.subject.jelG18en_US
dc.subject.jelH24en_US
dc.subject.ddc330en_US
dc.subject.keywordequilibrium security pricesen_US
dc.subject.keywordcapital income taxen_US
dc.subject.keywordequity premiumen_US
dc.subject.stwKapitalertragsteueren_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwPreisniveauen_US
dc.subject.stwExterner Effekten_US
dc.subject.stwZinsen_US
dc.subject.stwTheorieen_US
dc.titleEquilibrium security prices with capital income taxes and an exogenous interest rateen_US
dc.typeWorking Paperen_US
dc.identifier.ppn577320858en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cefswp:200808-
Appears in Collections:CEFS Working Paper Series, Center for Entrepreneurial and Financial Studies, Technische Universität München

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