Taxation and the external wealth of nations: Evidence from bilateral portfolio holdings

Autor:	Harry Huizinga, Maximilian Todtenhaupt, Johannes Voget, Wolf Wagner
Přispěvatelé:	Department of Finance, Department of Economics, Research Group: Finance, Research Group: Economics
Jazyk:	angličtina
Rok vydání:	2022
Předmět:	Economics and Econometrics Capital income Foreign portfolio investment foreign portfolio investment Economics Asset allocation Portfolio capital income taxation Monetary economics Tax reform Dividend tax asset location Finance
Zdroj:	Journal of International Money and Finance, 122:102548. Elsevier Journal of International Money and Finance, 122:102548. ELSEVIER SCI LTD
ISSN:	0261-5606
Popis:	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.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::63b7dcca4fb0f7bb6317d88878ce9ea1 https://pure.eur.nl/en/publications/0fa19729-7378-45ef-9399-6c8a359210a9 Zobrazit plný text záznamu Full Text from ScienceDirect