Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/59878 
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dc.contributor.authorBlaufus, Kayen
dc.contributor.authorMöhlmann, Axelen
dc.date.accessioned2012-07-11-
dc.date.accessioned2012-07-20T08:03:11Z-
dc.date.available2012-07-20T08:03:11Z-
dc.date.issued2012-
dc.identifier.urihttp://hdl.handle.net/10419/59878-
dc.description.abstractThis paper studies behavioral responses to taxes in financial markets. It is motivated by recent puzzling empirical evidence of taxable municipal bond yields significantly exceeding the level expected relative to tax exempt bonds. A behavioral explanation is a tax aversion bias, the phenomenon that people perceive an additional burden associated with tax payments. We conduct market experiments on the trading of differently taxed and labeled securities. The data show an initial overvaluation of tax payments that diminishes when subjects gain experience. The tax deduction of expenses is valued more than an equivalent tax exemption of earnings. We find that the persistence of the tax aversion bias critically depends on the quality of feedback. This suggests that tax aversion predominantly occurs in one-time, unfamiliar financial decisions and to a lesser extent in repetitive choices.en
dc.language.isoengen
dc.publisher|aArbeitskreis Quantitative Steuerlehre (arqus) |cBerlin en
dc.relation.ispartofseries|aarqus Discussion Paper |x133en
dc.subject.jelD03en
dc.subject.jelG32en
dc.subject.jelH20en
dc.subject.jelH3en
dc.subject.ddc330en
dc.subject.keywordBehavioral financeen
dc.subject.keywordBehavioral taxationen
dc.subject.keywordInvestor psychologyen
dc.subject.keywordTax aversionen
dc.subject.keywordExperimenten
dc.titleSecurity returns and tax aversion bias: Behavioral responses to tax labels-
dc.typeWorking Paperen
dc.identifier.ppn719202701en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:arqudp:133en

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