The effect of capital gains taxation on small business transfers and start-ups

Myeonghwan Cho

Economic Modelling, 2014, vol. 36, issue C, 447-454

Abstract: This paper studies the effect of capital gains taxation on small business transfers and business start-ups. We consider a model in which agents have different abilities to manage businesses and derive an agent's optimal choices as an owner or non-owner of a small business. Agents' optimal choices depend on their abilities. We also find that capital gains taxation has a negative effect on small business transfers but can encourage small business start-ups.

Keywords: Capital gains taxation; Business start-up; Lock-in effect (search for similar items in EconPapers)
JEL-codes: E62 H20 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:36:y:2014:i:c:p:447-454

DOI: 10.1016/j.econmod.2013.09.002

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