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|
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- Sausgruber, Rupert & Tyran, Jean-Robert, 2011.
"Are we taxing ourselves?: How deliberation and experience shape voting on taxes,"
Journal of Public Economics,
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- 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.
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- 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.).
- Eckel, Catherine C. & Grossman, Philip J., 2008. "Men, Women and Risk Aversion: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
- Catherine C. Eckel & Philip J. Grossman, 2008. "Sex and Risk: Experimental Evidence," Monash Economics Working Papers archive-09, Monash University, Department of Economics.
- 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.
- 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.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June. Full references (including those not matched with items on IDEAS)
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