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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," Economic Research Papers 269034, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269034
    DOI: 10.22004/ag.econ.269034
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    Keywords

    Financial Economics; Risk and Uncertainty;

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