|fulltext etc.||no fulltext attached|
This paper analyzes the general equilibrium effects of the new view
on dividend taxation. It embeds the nucleus theory of firm
development of Sinn (1991) into a framework of monopolistic
competition with new firm creation.
Dividend and capital gains taxes affect the outcome in two dimensions:
First, a differential treatment of dividends and capital gains distorts the
allocation of capital across firms. Second, dividend as well as capital gains taxes are anticipated at the start-up stage of firms. The capitalization is shown to depress firm creation and aggregate capital accumulation.
|type||working paper (English)|
|date of appearance||2003|
|citation||Dietz, M. (2003). Dividend and Capital Gains Taxation in a Cross-Section of Firms.|