Government Policy and Ownership of Financial Assets / Kristian Rydqvist, Joshua Spizman, Ilya A. Strebulaev.

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Rydqvist, Kristian

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w17522.Publication details: Cambridge, Mass. National Bureau of Economic Research 2011.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: Since World War II, direct stock ownership by households across the globe has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force. Using long time-series from eight countries, we show that the fraction of household ownership decreases with measures of the tax benefits of holding stocks inside tax-deferred plans. This finding is important for policy considerations on effective taxation and for financial economics research on the long-term effects of taxation on corporate finance and asset prices.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w17522 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w1752 Increasing Returns and the Theory of International Trade /	nber w17520 Sticky Prices: A New Monetarist Approach /	nber w17521 The Simple Analytics of the Melitz Model in a Small Open Economy /	nber w17522 Government Policy and Ownership of Financial Assets /	nber w17523 A survey of venture capital research /	nber w17524 Trade Liberalization and Embedded Institutional Reform: Evidence from Chinese Exporters /	nber w17525 Optimal Monetary Policy with Informational Frictions /	Next

October 2011.

Since World War II, direct stock ownership by households across the globe has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force. Using long time-series from eight countries, we show that the fraction of household ownership decreases with measures of the tax benefits of holding stocks inside tax-deferred plans. This finding is important for policy considerations on effective taxation and for financial economics research on the long-term effects of taxation on corporate finance and asset prices.