Biased effects of taxes and subsidies on portfolio choices
We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant differences after intervention, even though the net income is identical in all our treatments and thus the decision pattern of investors should be constant. In particular, we observe that the willingness to invest in the risky asset decreases markedly when an income tax has to be paid or when a subsidy is paid. If we combine both a tax and a subsidy, this effect intensifies.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.arqus.info/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Fochmann & Dirk Kiesewetter & Abdolkarim Sadrieh, 2010.
"Investment Behavior and the Biased Perception of Limited Loss Deduction in Income Taxation,"
FEMM Working Papers
100004, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- Fochmann, Martin & Kiesewetter, Dirk & Sadrieh, Abdolkarim, 2012. "Investment behavior and the biased perception of limited loss deduction in income taxation," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 230-242.
- Looney, Adam & Kroft, Kory & Chetty, Raj, 2009.
"Salience and Taxation: Theory and Evidence,"
9748525, Harvard University Department of Economics.
- Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and taxation: theory and evidence," Finance and Economics Discussion Series 2009-11, Board of Governors of the Federal Reserve System (U.S.).
- Raj Chetty & Adam Looney & Kory Kroft, 2007. "Salience and Taxation: Theory and Evidence," NBER Working Papers 13330, National Bureau of Economic Research, Inc.
- Rupert Sausgruber & Jean-Robert Tyran, 2010.
"Are We Taxing Ourselves? How Deliberation and Experience Shape Voting on Taxes,"
Vienna Economics Papers
1010, University of Vienna, Department of Economics.
- Sausgruber, Rupert & Tyran, Jean-Robert, 2011. "Are we taxing ourselves?: How deliberation and experience shape voting on taxes," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 164-176, February.
- Catherine C. Eckel & Philip J. Grossman, 2008.
"Sex and Risk: Experimental Evidence,"
Monash Economics Working Papers
archive-09, Monash University, Department of Economics.
- Eckel, Catherine C. & Grossman, Philip J., 2008. "Men, Women and Risk Aversion: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
When requesting a correction, please mention this item's handle: RePEc:zbw:arqudp:138. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.