Asset allocation, Capital income taxation, Foreign portfolio investment
Abstract:
This paper examines the impact of capital income taxation on the composition of foreign
portfolio investment and on long-term external wealth. Using data on bilateral portfolio
positions for a sample of 37 countries over the period 2001–2017, we find that capital gains
and dividend taxation reduce the share of equities in foreign investments, while interest
taxation increases this share. To examine the potential effects of capital income tax reform
on long-term external wealth, we simulate tax reforms in which each country replaces its
actual capital income tax rates by the average tax rates in the sample. We find that the
external wealth effects of such reforms can be very substantial, with estimates ranging
from +8.5% for Japan to -10% for New Zealand.
Dieser Eintrag ist Teil der Universitätsbibliographie.
Diese Publikation ist bisher nur Online erschienen. Diese Publikation nun als "Jetzt in Print erschienen" melden.
Search Authors in