The Perception of Income Taxation on Risky Investments– an experimental analysis of different methods ofloss compensation –

We analyze the effect of income taxation with limited loss deduction on investment decisions.An experiment with five treatments was conducted, one without taxation as a reference andfour with taxation and limited loss compensation. The participants’ task was to repeatedlychoose one out of two risky investment opportunities. Earnings from the experiment dependedon the payoffs of the participant’s investments.[...]

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Year of publication:	2009-12-02
Authors:	Fochmann, Martin ; Kiesewetter, Dirk ; Sadrieh, Abdolkarim
Institutions:	Arbeitskreis Quantitative Steuerlehre
Subject:	Investitionsentscheidung \| Investitionsverhalten \| Auszahlung <Spieltheorie> \| payoff

1 Introduction
2 Literature
2.1 Theoretical Contributions
2.2 Experimental Contributions
3 Decision task
3.1 Do taxes matter?
3.2 Perception of income taxation and loss deduction
4 Experimental design and setup
4.1 Experimental design of investment experiment
4.2 Experimental design of Hill Climbing
4.3 Experimental setup
5 Results
5.1 Do taxes matter?
5.2 Perception of income taxation and loss deduction
5.3 Influence of potentially important factors
5.4 Linear Regression
6 Discussion
Appendix
References

Persistent link: https://www.econbiz.de/10005868421