Taxes on Risky Returns — An Update
36 Pages Posted: 23 Jul 2014
Date Written: July 21, 2014
This paper surveys the theory on taxes on risky returns that originated from Domar and Musgrave (1944). Emphasis is given to the role of complete capital markets and on capital market imperfections arising from limited liability, moral hazard and adverse selection.
Keywords: Risk Taking, Taxation, Capital Markets
JEL Classification: H22, H25
Suggested Citation: Suggested Citation