Fischer, Marcel; Kraft, Holger; Munk, Claus - In: Journal of Economic Dynamics and Control 37 (2013) 11, pp. 2217-2240
We study the welfare effect of tax-optimizing portfolio decisions in a life cycle model with unspanned labor income and realization-based capital gain taxation. For realistic parameterizations of our model, certainty equivalent welfare gains from fully tax-optimized portfolio decisions are less...