Dividend and capital gains taxation under incomplete markets

作者：Anagnostopoulos Alexis; Carceles Poveda Eva^*; Lin Danmo

来源：Journal of Monetary Economics, 2012, 59(7): 599-611.

DOI：10.1016/j.jmoneco.2012.06.007

Motivated by the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) of 2003, the effects of capital income tax cuts are investigated in an economy with heterogeneous households and a representative, mature firm. Dividend tax cuts, contrary to capital gains tax cuts, lead to a decrease in investment and capital. This is because they increase the market value of existing capital and households require a higher return to hold this additional wealth. In line with empirical evidence, the model predicts substantial increases in dividends and stock prices. Overall, the tax cuts lead to a welfare reduction equivalent to a consumption drop of 0.5%. Published by Elsevier B.V.

• 出版日期2012-11