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dc.contributor.authorKenc, Turalay*
dc.date.accessioned2009-10-21T10:43:57Z
dc.date.available2009-10-21T10:43:57Z
dc.date.issued2004
dc.identifier.citationKenc, T. (2004). Taxation, risk-taking and growth: a continuous-time stochastic general equilibrium analysis with labor-leisure choice. Journal of Economic Dynamics and Control. Vol. 28, No. 8, pp. 1511-1539.en
dc.identifier.urihttp://hdl.handle.net/10454/3725
dc.descriptionNoen
dc.description.abstractThis paper investigates the equilibrium relationship between taxation, portfolio choice (risk-taking) and capital accumulation. Specifically, it examines how taxes affect risk-taking and capital accumulation. We extend the existing literature by relaxing two crucial assumptions in modelling risk-taking behavior: (i) that the investment opportunity set is fixed and (ii) that there is no distinction between attitudes towards risk and behavior towards intertemporal substitution. We extend the investment opportunity set of individuals through optimally determined human capital; and distinguish intertemporal substitution from attitudes towards risk via a recursive utility function. In the presence of these extensions, the paper successfully derives a closed-form solution to the stochastic growth model with stochastic wage income.en
dc.language.isoenen
dc.relation.isreferencedbyhttp://dx.doi.org/10.1016/J.JEDC.2003.10.001en
dc.subjectRisk-takingen
dc.subjectCapital and labor income taxationen
dc.subjectRecursive utilityen
dc.subjectLabor flexibilityen
dc.titleTaxation, risk-taking and growth: a continuous-time stochastic general equilibrium analysis with labor-leisure choice.en
dc.status.refereedYesen
dc.typeArticleen
dc.type.versionNo full-text available in the repositoryen


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