We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant … when an income tax has to be paid or when a subsidy is paid. We investigate this result further in a range of variations of … the baseline experiment and find our main result to be largely robust. However, as we reduce the number of states of …

This paper addresses the impacts of degree of risk aversion, subsidy scheme and choice of utility function on optimal …. Factors such as subsidy schemes, market conditions for the products and available labour on the farm are found to be more …

We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant … when an income tax has to be paid or when a subsidy is paid. If we combine both a tax and a subsidy, this effect … intensifies. -- tax perception ; risk-taking behavior ; portfolio choice ; distorting taxation ; tax ; subsidy ; behavioral …