On Thursday, June 21, noon-14 pm, Frank Fossen, Ph.D. from the University of Nevada will be the speaker of the Research Seminar in Economics. He will present his research paper on "How Do Entrepreneurial Portfolios Respond to Income Taxation?" at Kaminzimmer (room 202), Boltzmannstraße 20, Berlin-Dahlem.
We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a portfolio choice model that allows for tax sheltering, we show that lower tax rates may increase investment in entrepreneurial equity at the intensive margin, but decrease it at the extensive margin. Using German panel data, we identify tax effects on the portfolio shares of six asset classes by exploiting tax and entry regulation reforms. Our results indicate that lower taxes drive out businesses that are viable only due to tax sheltering, but increase investment in productive entrepreneurial businesses.
For further information about the Research Seminar in Economics and its program, please click here.
Jun 21, 2018 | 12:15 PM - 01:45 PM