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Taxation and Risk Taking: A General Equilibrium Perspective

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  • Kaplow, Louis

Abstract

Analysis of the interaction between a range of proportional taxes and risk taking finds a wage tax to have the same behavioral effect as a consumption tax, and that a proportional income tax absorbs no investment risk and yields certain revenue.

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  • Kaplow, Louis, 1994. "Taxation and Risk Taking: A General Equilibrium Perspective," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(4), pages 789-798, December.
    • Handle: RePEc:ntj:journl:v:47:y:1994:i:4:p:789-98
    DOI: 10.1086/NTJ41789108
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    References listed on IDEAS

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    1. Ahsan, Syed M., 1976. "Taxation in a two-period temporal model of consumption and portfolio allocation," Journal of Public Economics, Elsevier, vol. 5(3-4), pages 337-352.
    2. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    3. Jack M. Mintz, 1981. "Some Additional Results on Investment, Risk Taking, and Full Loss Offset Corporate Taxation with Interest Deductibility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(4), pages 631-642.
    4. Bohn, Henning, 1990. "Tax Smoothing with Financial Instruments," American Economic Review, American Economic Association, vol. 80(5), pages 1217-1230, December.
    5. Grinols, Earl L., 1985. "Public investment and social risk-sharing," European Economic Review, Elsevier, vol. 29(3), pages 303-321.
    6. Agnar Sandmo, 1977. "Portfolio Theory, Asset Demand and Taxation: Comparative Statics with Many Assets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(2), pages 369-379.
    7. Jack M. MINTZ, 1982. "«Neutral» Profit Taxation, Risk Taking and Optimal Profit Taxation," Discussion Papers (REL - Recherches Economiques de Louvain) 1982021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Kaplow, Louis, 1991. "Incentives and Government Relief for Risk," Journal of Risk and Uncertainty, Springer, vol. 4(2), pages 167-175, April.
    9. Innes, Robert, 1991. "Investment and government intervention in credit markets when there is asymmetric information," Journal of Public Economics, Elsevier, vol. 46(3), pages 347-381, December.
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