Barclay 1987 compared the exday price behavior prior to the introduction of federal taxes in 19. Nineteen eightyfour, novel by george orwell published in 1949 as a warning against totalitarianism. Unlike most major industrialized nations, the united states does not impose an excise tax on securities transactions. References the economic and fiscal consequences of. James michael poterba department of economics, e52373a massachusetts institute of technology cambridge, ma 0214247. In high school, summers found a book on his fathers shelf titled decision analysis. James michael poterba department of economics, e52373a. An alternative view of miller 1977, that taxexempt investors are the marginal owners of dividendpaying stocks, and individual dividend taxes thus do not depress share prices, is inconsistent with the data. This paper tests the catering theory of dividend in the french market. Monetary economics program, public economics program. During the recession of the early 1970s, investment professionals turned to the theories of a small band of mathematical economists, whose ideas on such topics as portfolio development and risk management eventually led to the reform and maintenance. Human behavior and the efficiency of the financial system. British data offer great potential to illuminate the dividends. On the predictability of stock returns in real time in the last 30 years.
Background material and data on programs within the jurisdicition of the committee on ways and means. Summer of 84 is a 2018 canadian horror mystery film directed by francois simard, anouk whissell and yoannkarl whissell and written by matt leslie and stephen j. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the. The economic and fiscal consequences of immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the united states, a major destination of world population movements. Lawrence henry summers born november 30, 1954 is an american economist, former vice president of development economics and chief economist of the world bank 199193, senior u. It is time, finally, to return to the crisis of 2008, to the conference at jackson hole, august 2123, where we began. Corporate shortterm thinking and the winner take all market. Frankfurt and basel, had been seeking for a year to defuse the situation behind the scenes. Ever since the empirical breakdown of linear structural exchange rate models, the predominant view on exchange rate dynamics has been based on the news model. Journal of financial economics 61 2001 000000 the theory and practice of corporate finance. They estimate a tax rate of 42% for 1972, the year before the reintroduction of the partial imputation system.
The persistence of volatility and stock market fluctuations james m. However, there is a scarcity of research on how dividend policy differs across. Conrad and kaul characterize the stochastic behavior of expected returns on common stock. Poterba search for more papers by this author lawrence h. The first american to win the nobel memorial prize in economic sciences, the swedish royal academies stated, when awarding the prize in 1970, that he has done more than any other contemporary economist to raise the level of scientific analysis in economic theory. James michael poterba department of economics, e52444. Does the catering theory of dividend apply to the french. This paper instead examines how corporate taxation affects investment by reducing the cash.
The national science foundation, the center for the study of the economy and the state, the alfred p. In their analysis of the aggregate stock market, cutler, poterba and summers 1989 reach similar conclusions. Read the economic and fiscal consequences of immigration. A chaotic monetary model of the exchange rate springerlink. The relative importance of financial and nonfinancial. Lawrence h summers this paper uses british data to examine the effects of dividend taxes on investors relative valuation of dividends and capital gains. Furthermore, repurchases and dividends are theoretically equivalent methods of payouts except where tax differentials favor one method over the other. We conclude that strong economic efficiency arguments can be made in.
Paul anthony samuelson may 15, 1915 december, 2009 was an american economist. Joint life annuities and the demand for annuities by married couples. A government that does a lot of short term borrowing exposes its people to the risk that interest rates. How retirement saving programs increase saving james m. Securities transfer excise tax stet directed at curbing excesses associated with shortterm speculation and at raising revenue. If the address matches an existing account you will receive an email with instructions to retrieve your username. He is also the president of the national bureau of economic research, a nonprofit research organization. Insider ownership and dividend policy in an imputation tax.
The film stars graham verchere, judah lewis, caleb emery, cory gruterandrew, jason graystanford, tiera skovbye, and rich sommer the film premiered at the 2018 sundance film festival. Poterba is from the massachusetts institute of technology and nber and summers is from harvard university and nber. New evidence that taxes affect the valuation of dividends. Mit department of economics the morris and sophie chang building 77 massachusetts avenue. The persistence of volatility and stock market fluctuations, nber working papers 1462, national bureau of economic research, inc. Gallen and aarhus school of business abstract using a complete sample of us equity options, we analyze patterns of implied volatility in the crosssection of equity options with respect to stock characteristics. The first american to win the nobel memorial prize in economic.
The bubble, the stampede, and the aftermath economic principals. The poetry teachers book of lists contains 155 different lists featuring 1500 poetry books for children and teensin a variety of categories including poetry awards, seasonal poetry, poetry across the curriculum, multicultural poetry, the poetryfriendly environment, poetry performance, guiding discussion, and teaching poetry writing. This article examines the desirability and feasibility of implementating a u. Poterba, venti and wise 1995 report that in 1984before the program could have had much effect on accumulated assetsthe ratio of the median of nonira, non40lk assets of eligibles to that of noneligibles, controlling for income and weighted by the number of observations within income intervals, was exactly 1. Sloan foundation, and dimensional fund advisors provided financial support. Poterba is the mitsui professor of economics at mit massachusetts institute of technology. Recently, there have been many attempts to relate changes in stock market volatility to changes in expected returns to stocks, including merton 1980, pindyck 1984, poterba and summers 1986, french, schwert, and stambaugh 1987, bollerslev, engle, and wooldridge 1988, and abel 1988. Cutler, poterba and summers found that news does not adequately explain market movement.
We know, too, that policymakers had little idea how dangerous. Do institutional investors alleviate agency problems by. This paper examines the potential influence of changing volatility in stock market prices on the level of stock market prices. Mit graduate economics association teacher of the year. Rotemberg, robert shiller, lawrence summers, david weil, and william wheaton for. Fama and french 1988 and poterba and summers 1988 study meanreversion in prices and point out that one of the possible explanation for mean reversion is the deviation of price from the ecient market value. A novel, often published as 1984, is a dystopian novel by english novelist george orwell. Harveya,b, afuqua school of business, duke university, durham, nc 27708, usa. The citizens utilities case reconsidered, journal of. The autocorrelation findings are reported by fama and french 1986, lo and mackinlay 1988, and poterba and summers 1988. For a single market, roll 1984 highlighted a link between orange juice and the. We are indebted to ken weiler and ignacio mas for research assistance, and to fischer black, john flemming, zvi griliches, roger gordon, costas kaplanis, mervyn king, nancy rose, and jeremy smithers for helpful discussions.
On the predictability of stock returns in real time. Still, it is known that corporate payout policies vary widely, but. His chilling dystopia made a deep impression on readers, and his ideas entered mainstream culture in a way achieved by very few books. Evidence and implications, journal of financial economics. British data offer great potential to illuminate the dividends and taxes question, since there have been two radical changes and several minor reforms in british dividend. New evidence that taxes affect the valuation of dividends, journal of finance 39 1984, 971415.
Implied and realized volatility in the crosssection of equity options manuel ammann, david skovmand, michael verhofen university of st. Feldstein 1970, formalized by black 1979 and empirically veri. James michael poterba department of economics, e52. Poterba and summers show that stock returns show positive autocorrelation over short periods and negative autocorrelation over longer horizons. Do institutional investors alleviate agency problems by influencing. Honorable mention, culpwright book award, american risk and insurance association 2002. Department of the treasury, june 22, 1999 by united states book. This paper analyzes the statistical evidence bearing on whether transitory components account for a large fraction of the variance in common stock returns. Tversky 1984 causal versus diagnostic contingencies. The story was mostly written at barnhill, a farmhouse on the scottish island of jura, at times while orwell suffered from severe tuberculosis. Streetwise brings together classic articles from the publication that helped revolutionize the way wall street does business. Implied and realized volatility in the crosssection of.
We know, too, that policymakers had little idea how dangerous the situation would become, and. We know now that the policy makers who stayed home, in washington, new york, london. They report that there is little, if any, correlation between the greatest aggregate market movement and public release of important information. The persistence of volatility and stock market fluctuations nber. Barclay 1987 compared the exday price behavior prior to the introduction of federal taxes in 19 with its behavior in the years 1962 to 1985. Poterba and summers an d o thers ha ve argued that stock prices. In this model the only sources driving the exchange rate are random events, such as those explored by frenkel and mussa 1985, levich 1985 and mussa 1984. Focusing on france is appealing for several reasons. Treasury department official throughout president clintons administration ultimately treasury secretary, 19992001, and former director of the national economic council for. Perfect for acing essays, tests, and quizzes, as well as for writing lesson plans.
In a 1984 paper, james poterba and lawrence summers tested several competing hypotheses regarding the economic effects of dividend taxation, using data from the united kingdom. Readings public economics ii economics mit opencourseware. Sep, 2015 it is time, finally, to return to the crisis of 2008, to the conference at jackson hole, august 2123, where we began. New evidence that taxes affect the valuation of dividends nber. Ifequityriskpremiumwastime varying over the business cycle then. Introductory lectures on choices under uncertainty, by howard raiffa, an economics professor at harvard. Concepts such as big brother and the thought police are instantly recognized.469 580 64 421 832 816 1418 1172 589 287 532 1195 14 658 553 1082 210 1420 381 1635 664 585 1291 13 1006 659 819 1153 1320 659 408 1089 1216 850 1260 566 471 328 360 393