Download This PaperWho Sold During the Crash of 2008-9? Evidence from Tax-Return Data on Daily Sales of Stock
87 Pages Posted: 2 May 2016 Last revised: 9 Mar 2023
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Who Sold During the Crash of 2008-9? Evidence from Tax-Return Data on Daily Sales of Stock
Date Written: April 2016
Abstract
We examine individual stock sales from 2008 to 2009 using population tax return data. The share of sales by the top 0.1 percent of income recipients and other top income groups rose sharply following the Lehman Brothers bankruptcy and remained elevated throughout the financial crisis. Sales by top income and older age groups were relatively more responsive to increased stock market volatility. Volatility-driven sales were not concentrated in any one sector, but mutual fund sales responded more strongly to increased volatility than stock sales. Additional analysis suggests that gross sales in tax return data are informative about unobserved net sales.
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Jeffrey L. Hoopes (Contact Author)
University of North Carolina (UNC) at Chapel Hill - Accounting Area ( email )
McColl Building
Chapel Hill, NC 27599-3490
United States
Stefan Nagel
University of Chicago - Booth School of Business ( email )
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Chicago, IL 60637
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CESifo (Center for Economic Studies and Ifo Institute) ( email )
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Munich, DE-81679
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Joel B. Slemrod
University of Michigan, Stephen M. Ross School of Business ( email )
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