The evolution of aggregate stock ownership
AbstractSince World War II, direct stock ownership by households has largely been replaced by indirect stock ownership by financial institutions.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 effective 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 Center for Financial Studies (CFS) in its series CFS Working Paper Series with number 2011/18.
Date of creation: 2011
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Capital Gains Tax; Income Tax; Stock Ownership; Bond Ownership; Inflation; Bracket Creep; Pension Funds;
Find related papers by JEL classification:
- 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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