TY  - JOUR
AU  - Auerbach,Alan J.
TI  - Evaluating the Taxation of Risky Assets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 806
PY  - 1981
Y2  - November 1981
UR  - http://www.nber.org/papers/w0806
L1  - http://www.nber.org/papers/w0806.pdf
N1  - Author contact info:
Alan J. Auerbach
Department of Economics
530 Evans Hall, #3880
University of California, Berkeley
Berkeley, CA 94720-3880
Tel: 510/643-0711
Fax: 510/643-0413
E-Mail: auerbach@econ.berkeley.edu
AB  - This paper explores the taxation of risky assets, both from the theoretical perspective of optimal taxation and from the practical one of measuring "the" tax rate on an asset when, as under existing practice, its stochastic returns are subject to differential tax treatment across states of nature. The results suggest that it may be "appropriate" for tax rates to vary systematically with the riskiness of an asset, but that use of the expected tax rate to evaluate the characteristics of any particular tax system may be very misleading.
ER  -