The introduction of ChatGPT in November 2022 by OpenAI has stimulated substantial discourse on the implementation of artificial intelligence (AI) in various domains such as academia, business, and society at large. Although AI has been utilized in numerous areas for several years, the emergence...

We measure the tax advantage of public firms over private firms, which operate at municipality level in the German household solid waste disposal industry. Public firms with sovereign duties pay no taxes, but equivalent private firms have to. In a simple risk‐free setting, we develop a measure...

The literature on differential taxation of asset specific payoffs presents different representations of security market lines (SMLs), with puzzling features such as parallel lines and lines with the same intercept but different slopes - a security market fan. We show that these results can be...