The Evolution of Aggregate Stock Ownership - A Unified Explanation
AbstractSince World War II, direct stock ownership by households has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force. Using long time-series from eight countries, we show that the fraction of household ownership decreases with measures of the tax benefits of holding stocks inside a pension plan. This finding is important for policy considerations on effctive taxation and for financial economics research on the long-term effects of taxation on corporate finance and asset prices.
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Bibliographic InfoPaper provided by Institute for Financial Research in its series SIFR Research Report Series with number 68.
Length: 53 pages
Date of creation: 15 Sep 2009
Date of revision:
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Capital gains tax; income tax; stock ownership; inflation; bracket creep; pension funds;
Other versions of this item:
- Rydqvist, Kristian & Spizman, Joshua & Strebulaev, Ilya, 2009. "The Evolution of Aggregate Stock Ownership---A Unified Explanation," CEPR Discussion Papers 7356, C.E.P.R. Discussion Papers.
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
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