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Risk Taking and Taxation : An Alternative Perspective

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  • Kanbur, S.M

Abstract

The analysis of risk taking and taxation has almost invariably been in a portfolio choice framework. This paper presents the alternative perspective of an occupational choice framework - where risk taking involves the additional element of discrete choice between safe and risky activities. It is shown that the specification of equilibrium must of necessity have a general equilibrium character. In this setting the paper develops rules for government intervention in the market equilibrium, and analyses the effects of taxation on risk taking.

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  • Kanbur, S.M, 1978. "Risk Taking and Taxation : An Alternative Perspective," The Warwick Economics Research Paper Series (TWERPS) 136, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:136
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/1978-1988/twerp136.pdf
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