 Tax measures and household financial behaviour: Evidence from FranceThe Quarterly Review of Economics and Finance, 2017, vol. 66, issue C, 127-135 Abstract: The aim of the paper was to examine how tax measures on financial assets have affected the investment behaviour of French households. Using an ARDL approach, we estimated the financial behaviour and effect of tax measures for each financial asset. We found that investment behaviour varies according to the considered financial asset. For almost all financial assets, income has a positive influence on the invested amount, and inflation has a negative influence. Nevertheless, we found that previous financial wealth has a significant positive impact only on long term investment. The real interest rate has different impacts on the invested amount according to the individual financial asset. Our results indicate that tax measures have a significant impact on investment behaviour. In particular, we found a spillover effect from tax measures and an asymmetric behaviour. These findings confirm that households have non-standard preferences, since the results could be explained by a liquidity preference and a loss aversion effect. The results have implications for asset managers and policymakers. Keywords: Taxation; Financial behaviour; ARDL (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:66:y:2017:i:c:p:127-135 DOI: 10.1016/j.qref.2017.01.013 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.