Do investors respond to tax reform? Evidence from a natural experiment in Germany

Sauter, Nicolas und Winter, Joachim (2010): Do investors respond to tax reform? Evidence from a natural experiment in Germany. In: Economics Letters, Vol. 108, No. 2: pp. 193-196

Abstract

We present new evidence for the importance of taxation in households’ investment decisions. A difference-in-difference analysis shows that a tax reform in Germany which revoked the tax exemption of life insurance returns triggered a significant increase in demand prior to the reform.

• Item Type: Journal article
• Faculties: Economics; Economics > Chairs > Chair of Empirical Economics
• Subjects: 300 Social sciences > 330 Economics
• Language: English