Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

Taxing the rich to finance redistribution - Evidence from a permanent tax increase in Singapore

Sumit AGARWAL, Wenlan QIAN, Bernard YEUNG, Huanhuan ZHENG
Based on a representative sample of consumer financial transaction data, this paper studies the consumption and savings response to a 2015 permanent increase in the marginal income tax of the high-income taxpayers. Using difference-in-differences regressions, controlling for individual and time fixe...
Keywords: income tax, Consumption, savings, redistributive policy, Fiscal Policy
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Annual Conference

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Corporate Finance

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May 2023

Tax Incentives, Small Businesses, and Physical Capital Reallocation

Riddha BASU, Doyeon KIM, Manpreet SINGH
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

Tax Evasion, Capital Gains Taxes, and the Housing Market

Jing WU, Sumit AGARWAL, Keyang LI, Qin YU, Jubo YAN
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

Tax Evasion and Information Production: Evidence from the FATCA and Offshore Asset Management

Hong ZHANG, Massimo MASSA, Si CHENG
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

Tax Efficient Asset Management: Evidence from Equity Mutual Funds

Clemens SIALM, Hanjiang ZHANG
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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