Annual Conference

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Corporate Finance

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May 2023

Our study presents novel evidence on the physical capital reallocation e↵ect of temporary federal tax incentives. Using data on equipment purchases by small businesses, we found that temporary tax subsidies on new equipment, specifically in accelerated depreciation, increase investment in old capi...
Keywords: Taxes, Bonus Depreciation, Old Capital, Capital Reallocation, Investment
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2019

In this paper, we exploit a policy shock that differentially increased capital gains taxes for some residential property sellers and document tax evasion in the residential resale market in China. Having precise information of the transaction price and the reported price to the tax authority, we sho...
Keywords: Tax evasion, capital gains tax, housing market, housing policy
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2022

We examine how tax evasion affects offshore asset managers’ incentives for information production. Using the Foreign Account Tax Compliance Act (FATCA) as an exogenous shock, we document that affected funds significantly enhance their performance as a response. This improvement comes from better i...
Keywords: Tax evasion, FATCA, Mutual Funds, managerial incentives, market efficiency
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2015

We investigate the relation between tax burdens and mutual fund performance from both a theoretical and an empirical perspective. The theoretical model introduces heterogeneous tax clienteles in an environment with decreasing returns to scale and shows that the equilibrium performance of mutual fund...
Keywords: Dividend and Capital Gains Taxes, Mutual Fund Performance
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2021

The success of behavioral economics has led to a new challenge—many biases offering observationally similar predictions for a targeted financial anomaly. To tame this bias zoo, we combine subjective survey responses with observational data to propose a new approach, one that is robust to question-...
Keywords: excessive trading, survey, gambling preference, overconfidence
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