Excess taxation of capital gains is a by-product of inflation in a tax system that uses nominal values as its basis. Studies by Feldstein, Green and Sheshinsky [JPE 1978] and Feldstein and Slemrod [NBER WP 234, 1978] analyze related macroeconomic distortions associated with corporate stock...

Using a corporate valuation model with personal taxation, this study explores an arbitrage opportunity allowing any public corporation classified under the U.S. law as closed-end investment company to systematically earn an abnormal return by giving up the privilege of pass-through income...

Stock markets in emerging economies are often surrounded by a fast-pace real and monetary growth. The high returns typical of those markets continue to attract foreign investors who are looking to enhance the performance of their portfolios. A number of studies demonstrate the advantage of...

In setting the allowable rate of return of public utilities, U.S. regulatory agencies and the courts continue to rely on the standard discounted-cash-flow (DCF) method based on the Gordon-Miller-Modigliani model of share valuation under constant growth - a model which ignores personal taxes....