Tax Arbitrage with Risk and Effort Aversion -- Swedish Lottery Bonds 1970-1990
34 Pages Posted: 5 Apr 2010
There are 3 versions of this paper
Tax Arbitrage with Risk and Effort Aversion Swedish Lottery Bonds 1970-1990
Tax Arbitrage with Risk and Effort Aversion - Swedish Lottery Bonds 1970-1990
Date Written: March 2010
Abstract
Swedish lottery bonds are valuable tax shelters before the tax reform of 1991. By trading around the coupon lottery, high-tax investors with capital gains from the stock market shift their tax liability to low-tax investors. The uncertainty of the coupon lottery and the effort of verifying the winning lottery bond numbers are a nuisance to tax traders. We investigate how the Treasury (issuer), market makers (banks), and lottery bond investors respond to those frictions.
Keywords: ex-dividend day, lottery number checking, rationing, tax arbitrage, turn-of-the-year effect, underpricing
JEL Classification: G12, G18
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Why are British Premium Bonds so Successful? The Effect of Saving With a Thrill
By Sebastian Lobe and Alexander Hölzl
-
Preferences Toward Risk and Asset Prices: Evidence from Russian Lottery Bonds
By Andrey Ukhov
-
Using Financial Innovation to Support Savers: From Coercion to Excitement
By Peter Tufano and Daniel Schneider
-
Making Savers Winners: An Overview of Prize-Linked Savings Products
By Melissa S. Kearney, Peter Tufano, ...
-
Making Savers Winners: An Overview of Prize-Linked Saving Products
By Melissa S. Kearney, Peter Tufano, ...
-
Tax Arbitrage with Risk and Effort Aversion - Swedish Lottery Bonds 1970-1990
-
Tax Arbitrage with Risk and Effort Aversion Swedish Lottery Bonds 1970-1990
-
Consumer Demand for Prize-Linked Savings: A Preliminary Analysis
By Nick Maynard, Jan‐emmanuel De Neve, ...