Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/48419 
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dc.contributor.authorRapp, Marc Steffenen
dc.contributor.authorSchwetzler, Bernharden
dc.date.accessioned2011-07-18T08:59:20Z-
dc.date.available2011-07-18T08:59:20Z-
dc.date.issued2008-
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
dc.language.isoengen
dc.publisher|aTechnische Universität München, Center for Entrepreneurial and Financial Studies (CEFS) |cMünchenen
dc.relation.ispartofseries|aWorking Paper |x2008-08en
dc.subject.jelG12en
dc.subject.jelG18en
dc.subject.jelH24en
dc.subject.ddc330en
dc.subject.keywordequilibrium security pricesen
dc.subject.keywordcapital income taxen
dc.subject.keywordequity premiumen
dc.subject.stwKapitalertragsteueren
dc.subject.stwOptimale Besteuerungen
dc.subject.stwSteuerwirkungen
dc.subject.stwPreisniveauen
dc.subject.stwExterner Effekten
dc.subject.stwZinsen
dc.subject.stwTheorieen
dc.titleEquilibrium security prices with capital income taxes and an exogenous interest rate-
dc.typeWorking Paperen
dc.identifier.ppn577320858en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:cefswp:200808en

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