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Taxes on risky returns — an update

Author

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  • Wolfgang Buchholz
  • Kai A. Konrad

Abstract

This paper surveys the theory on taxes on risky returns that originated from Domar and Musgrave (1944). Emphasis is given to the role of complete capital markets and on capital market imperfections arising from limited liability, moral hazard and adverse selection.

Suggested Citation

  • Wolfgang Buchholz & Kai A. Konrad, 2014. "Taxes on risky returns — an update," Working Papers tax-mpg-rps-2014-10, Max Planck Institute for Tax Law and Public Finance.
    • Handle: RePEc:mpi:wpaper:tax-mpg-rps-2014-10
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    File URL: http://www.tax.mpg.de/RePEc/mpi/wpaper/TAX-MPG-RPS-2014-10.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Robin Boadway & Pierre Pestieau, 2019. "Over the Top: Why an Annual Wealth Tax for Canada is Unnecessary," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 546, June.
    2. Robin Boadway & Motohiro Sato & Jean-Francois Tremblay, 2015. "Cash-flow business taxation revisited: bankruptcy, risk aversion and asymmetric information," Working Papers 1531, Oxford University Centre for Business Taxation.
    3. Becker, Johannes & Johannesen, Niels & Riedel, Nadine, 2020. "Taxation and the allocation of risk inside the multinational firm," Journal of Public Economics, Elsevier, vol. 183(C).
    4. Eddy Zanoutene, 2023. "Scale‐dependent and risky returns to savings: Consequences for optimal capital taxation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(3), pages 532-569, June.
    5. Kevin Spiritus & Robin Boadway, 2017. "The Optimal Taxation of Risky Capital Income: The Rate of Return Allowance," Working Papers of Department of Economics, Leuven 573073, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    6. Robin Boadway & Pierre Pestieau, 2018. "The tenuous case for an annual wealth tax," Working Papers 2018/01, Institut d'Economia de Barcelona (IEB).
    7. repec:ces:ifodic:v:16:y:2018:i:2:p:50000000002753 is not listed on IDEAS

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    More about this item

    Keywords

    risk taking; taxation; capital markets;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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