Hostname: page-component-78c5997874-fbnjt Total loading time: 0 Render date: 2024-11-18T01:08:00.515Z Has data issue: false hasContentIssue false
  • English
  • Français

Taxing the Disposition Effect: The Impact of Tax Awareness on Investor Behavior

Published online by Cambridge University Press:  03 June 2022

William J. Bazley Open the ORCID record for William J. Bazley [Opens in a new window] ,
Jordan Moore  and
Melina Murren Vosse
William J. Bazley*
Affiliation:
University of Kansas
Jordan Moore
Affiliation:
Rowan Universitymoorejs@rowan.edu
Melina Murren Vosse
Affiliation:
University of San DiegoMMurren@bus.miami.edu
*
wbazley@ku.edu (corresponding author)
Get access Rights & Permissions [Opens in a new window]

Abstract

Standard portfolio choice models predict that investors consider the tax implications of trading. However, individuals are disposed toward realizing gains and holding losing investments, behaviors that worsen their performance. We show, in an experimental market, that increasing tax salience reduces the disposition effect between 22% and 47%, leading to higher portfolio balances without increasing total trading activity. Using field data, we find that investors’ disposition is sensitive to taxes around tax rate changes when taxes are likely salient. Our analysis demonstrates that increasing tax awareness can affect households’ portfolio choices, which suggests policy implications for improving financial decision-making.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 57 , Issue 7 , November 2022 , pp. 2724 - 2765
Copyright
© The Author(s), 2022. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We thank an anonymous referee, Gennaro Bernile, Fernando Chague, Indraneel Chakraborty, Jennifer Conrad (the editor), Carina Cuculiza, Sarah Khalaf, George Korniotis, Alok Kumar, Ville Rantala, and Prithu Vatsa, and seminar participants at the University of Miami and at the 2020 Financial Management Association Annual Conference for insightful comments. We appreciate research funding from the Rowan University Seed Funding Program. The Rowan University Institutional Review Board (IRB) approved the research methods used in the article (IRB Protocol #2019000376).

References

Alm, J., and Whittington, L. A.. “Does the Income Tax Affect Marital Decisions?” National Tax Journal, 48 (1995), 565–572.CrossRefGoogle ScholarPubMed
Amir, O.; Rand, D. G.; and Gal, Y.. “Economic Games on the Internet: The Effect of $1 Stakes.” PLoS ONE, 7 (2012), e31461.CrossRefGoogle ScholarPubMed
An, L.; Engelberg, J.; Henriksson, M.; Wang, B.; and Williams, J.. “The Portfolio-Driven Disposition Effect.” Working Paper, Tsinghua University (2021).Google Scholar
Asness, C. S.; Moskowitz, T. J.; and Pedersen, L. H.. “Value and Momentum Everywhere.” Journal of Finance, 68 (2013), 929–985.CrossRefGoogle Scholar
Attanasio, O. P.; Bottazzi, R.; Low, H. W.; Nesheim, L.; and Wakefield, M.. “Modelling the Demand for Housing over the Life Cycle.” Review of Economic Dynamics, 15 (2012), 1–18.Google Scholar
Auerbach, A. J.; Burman, L. E.; and Siegel, J.. “Capital Gains Taxation and Tax Avoidance: New Evidence from Panel Data.” Technical Report, National Bureau of Economic Research (1998).Google Scholar
Auerbach, A. J., and Poterba, J.. “Capital Gains Taxation in the United States: Realizations, Revenue, and Rhetoric.” Brookings Papers on Economic Activity, 1988 (1988), 595–637.CrossRefGoogle Scholar
Baker, M.; Nagel, S.; and Wurgler, J.. “The Effect of Dividends on Consumption.” Technical Report, National Bureau of Economic Research (2006).Google Scholar
Barber, B. M., and Odean, T.. “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors.” Journal of Finance, 55 (2000), 773–806.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment.” Quarterly Journal of Economics, 116 (2001), 261–292.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “Online Investors: Do the Slow Die First?” Review of Financial Studies, 15 (2002), 455–488.CrossRefGoogle Scholar
Barber, B. M., and Odean, T.. “The Behavior of Individual Investor.” In Handbook of the Economics of Finance, Vol. 2, Constantinides, G. M., Harris, M., and Stulz, R. M., eds. Amsterdam, The Netherlands: Elsevier (2013), 1533–1569.Google Scholar
Barberis, N., and Huang, M.. “Mental Accounting, Loss Aversion, and Individual Stock Returns.” Journal of Finance, 56 (2001), 1247–1292.CrossRefGoogle Scholar
Barberis, N., and Xiong, W.. “What Drives the Disposition Effect? An Analysis of a Long-Standing Preference-Based Explanation.” Journal of Finance, 64 (2009), 751–784.CrossRefGoogle Scholar
Barberis, N., and Xiong, W.. “Realization Utility.” Journal of Financial Economics, 104 (2012), 251–271.CrossRefGoogle Scholar
Bauder, D. “Pataki Releases Details of Tax Cut Plan.” New York Beacon 53 (4) (Feb. 10, 1995).Google Scholar
Bazley, W. J.; Cronqvist, H.; and Mormann, M. M.. “Visual Finance: The Pervasive Effects of Red on Investor Behavior.” Management Science, 67 (2021), 5616–5641.CrossRefGoogle Scholar
Benartzi, S. The Smarter Screen: Surprising Ways to Influence and Improve Online Behavior. New York City, New York: Penguin (2017).Google Scholar
Benartzi, S.; Beshears, J.; Milkman, K. L.; Sunstein, C. R.; Thaler, R. H.; Shankar, M.; Tucker-Ray, W.; Congdon, W. J.; and Galing, S.. “Should Governments Invest More in Nudging?” Psychological Science, 28 (2017), 1041–1055.CrossRefGoogle ScholarPubMed
Bernile, G.; Korniotis, G.; Kumar, A.; and Wang, Q.. “Local Business Cycles and Local Liquidity.” Journal of Financial and Quantitative Analysis, 50 (2015), 987–1010.CrossRefGoogle Scholar
Birru, J. “Confusion of Confusions: A Test of the Disposition Effect and Momentum.” Review of Financial Studies, 28 (2015), 1849–1873.CrossRefGoogle Scholar
Birru, J.; Chague, F.; De-Losso, R.; and Giovannetti, B.. “Attention and Biases: Evidence from Tax-Inattentive Investors.” Working Paper No. 2019-22, Charles A. Dice Center (2019).CrossRefGoogle Scholar
Bordalo, P.; Gennaioli, N.; and Shleifer, A.. “Salience Theory of Choice Under Risk.” Quarterly Journal of Economics, 127 (2012), 1243–1285.CrossRefGoogle Scholar
Bordalo, P.; Gennaioli, N.; and Shleifer, A.. “Salience and Asset Prices.” American Economic Review, 103 (2013), 623–628.CrossRefGoogle Scholar
Bricker, J.; Dettling, L. J.; Henriques, A.; Hsu, J. W.; Jacobs, L.; Moore, K. B.; Pack, S.; Sabelhaus, J.; Thompson, J.; and Windle, R. A.. “Changes in US Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances.” Federal Reserve Bulletin, 103 (2017), 1.CrossRefGoogle Scholar
Brozovsky, J., and Cataldo, A. J.. “A Historical Analysis of the Marriage Tax Penalty.” Accounting Historians Journal, 21 (1994), 163–187.CrossRefGoogle Scholar
Bullock, C. Cobler of Preston. London, UK: Cornmarket P (1716).Google Scholar
Campbell, J. Y. “Household Finance.” Journal of Finance, 61 (2006), 1553–1604.CrossRefGoogle Scholar
Campbell, J. Y. “Richard T. Ely Lecture Restoring Rational Choice: The Challenge of Consumer Financial Regulation.” American Economic Review, 106 (2016), 1–30.CrossRefGoogle Scholar
Campbell, J. Y., and Cocco, J. F.. “How Do House Prices Affect Consumption? Evidence from Micro Data.” Journal of Monetary Economics, 54 (2007), 591–621.CrossRefGoogle Scholar
Campbell, J. Y.; Ramadorai, T.; and Ranish, B.. “Getting Better or Feeling Better? How Equity Investors Respond to Investment Experience.” Technical Report, National Bureau of Economic Research (2014).CrossRefGoogle Scholar
Casler, K.; Bickel, L.; and Hackett, E.. “Separate but Equal? A Comparison of Participants and Data Gathered via Amazon’s MTurk, Social Media, and Face-to-Face Behavioral Testing.” Computers in Human Behavior, 29 (2013), 2156–2160.CrossRefGoogle Scholar
Chetty, R.; Looney, A.; and Kroft, K.. “Salience and Taxation: Theory and Evidence.” American Economic Review, 99 (2009), 1145–1177.CrossRefGoogle Scholar
Choi, J. J.; Laibson, D.; Madrian, B. C.; and Metrick, A.. “Optimal Defaults.” American Economic Review, 93 (2003), 180–185.CrossRefGoogle Scholar
Cici, G. “The Prevalence of the Disposition Effect in Mutual Funds’ Trades.” Journal of Financial and Quantitative Analysis, 47 (2012), 795–820.CrossRefGoogle Scholar
Constantinides, G. M. “Capital Market Equilibrium with Personal Tax.” Econometrica: Journal of the Econometric Society, 51 (1983), 611–636.CrossRefGoogle Scholar
Constantinides, G. M.. “Optimal Stock Trading with Personal Taxes: Implications for Prices and the Abnormal January Returns.” Journal of Financial Economics, 13 (1984), 65–89.CrossRefGoogle Scholar
Constantinides, G. M., and Scholes, M. S.. “Optimal Liquidation of Assets in the Presence of Personal Taxes: Implications for Asset Pricing.” Journal of Finance, 35 (1980), 439–449.CrossRefGoogle Scholar
Coval, J. D., and Moskowitz, T. J.. “Home Bias at Home: Local Equity Preference in Domestic Portfolios.” Journal of Finance, 54 (1999), 2045–2073.CrossRefGoogle Scholar
D’Acunto, F. “Identity and Choice Under Risk.” Working Paper, Boston College (2018).CrossRefGoogle Scholar
D’Acunto, F.; Prabhala, N.; and Rossi, A. G.. “The Promises and Pitfalls of Robo-Advising.” Review of Financial Studies, 32 (2019), 1983–2020.CrossRefGoogle Scholar
Da, Z.; Engelberg, J.; and Gao, P.. “The Sum of All FEARS Investor Sentiment and Asset Prices. Review of Financial Studies, 28 (2014), 1–32.CrossRefGoogle Scholar
Dao, J. “The Pataki Budget: The Overview; Pataki Proposes Broad Reductions in State Spending.” New York Times (Feb. 2, 1995).Google Scholar
Davis, J. C., and Henderson, J. V.. “The Agglomeration of Headquarters.” Regional Science and Urban Economics, 38 (2008), 445–460.CrossRefGoogle Scholar
Dhar, R., and Zhu, N.. “Up Close and Personal: Investor Sophistication and the Disposition Effect.” Management Science, 52 (2006), 726–740.CrossRefGoogle Scholar
Duarte, J.; Siegel, S.; and Young, L.. “Trust and Credit: The Role of Appearance in Peer-to-Peer Lending.” Review of Financial Studies, 25 (2012), 2455–2484.CrossRefGoogle Scholar
Fama, E. F., and French, K. R.. “Size, Value, and Momentum in International Stock Returns.” Journal of Financial Economics, 105 (2012), 457–472.CrossRefGoogle Scholar
Feenberg, D. R., and Rosen, H. S.. “Recent Developments in the Marriage Tax.” Technical Report, National Bureau of Economic Research (1994).CrossRefGoogle Scholar
Feng, L., and Seasholes, M. S.. “Do Investor Sophistication and Trading Experience Eliminate Behavioral Biases in Financial Markets?” Review of Finance, 9 (2005), 305–351.CrossRefGoogle Scholar
Fernandes, D.; Lynch, J. G. Jr.; and Netemeyer, R. G.. “Financial Literacy, Financial Education, and Downstream Financial Behaviors.” Management Science, 60 (2014), 1861–1883.CrossRefGoogle Scholar
Ferris, S. P.; Haugen, R. A.; and Makhija, A. K.. “Predicting Contemporary Volume with Historic Volume at Differential Price Levels: Evidence Supporting the Disposition Effect.” Journal of Finance, 43 (1988), 677–697.CrossRefGoogle Scholar
Fischbacher, U., Hoffmann, G., and Schudy, S.. “The Causal Effect of Stop-Loss and Take-Gain Orders on the Disposition Effect.” Review of Financial Studies, 30 (2017), 2110–2129.CrossRefGoogle Scholar
Frazzini, A. “The Disposition Effect and Underreaction to News.” Journal of Finance, 61 (2006), 2017–2046.CrossRefGoogle Scholar
Frydman, C.; Barberis, N.; Camerer, C.; Bossaerts, P.; and Rangel, A.. “Using Neural Data to Test a Theory of Investor Behavior: An Application to Realization Utility.” Journal of Finance, 69 (2014), 907–946.CrossRefGoogle Scholar
Frydman, C.; Hartzmark, S.; and Solomon, D.. “Rolling Mental Accounts.” Review of Financial Studies, 31 (2018), 362–397.CrossRefGoogle Scholar
Frydman, C., and Rangel, A.. “Debiasing the Disposition Effect by Reducing the Saliency of Information About a Stock’s Purchase Price.” Journal of Economic Behavior & Organization, 107 (2014), 541–552.CrossRefGoogle ScholarPubMed
Frydman, C., and Wang, B.. “The Impact of Salience on Investor Behavior: Evidence from a Natural Experiment.” Journal of Finance, 75 (2020), 229–276.CrossRefGoogle Scholar
Gargano, A., and Rossi, A. G.. “Does It Pay to Pay Attention?” Review of Financial Studies, 31 (2018), 4595–4649.CrossRefGoogle Scholar
Genesove, D., and Mayer, C.. “Loss Aversion and Seller Behavior: Evidence from the Housing Market.” Quarterly Journal of Economics, 116 (2001), 1233–1260.CrossRefGoogle Scholar
Goetzmann, W. N., and Massa, M.. “Disposition Matters: Volume, Volatility, and Price Impact of a Behavioral Bias.” Journal of Portfolio Management, 34 (2008), 103–125.CrossRefGoogle Scholar
Goldin, J. “Optimal Tax Salience.” Journal of Public Economics, 131 (2015), 115–123.CrossRefGoogle Scholar
Gomes, F.; Haliassos, M.; and Ramadorai, T.. “Household Finance.” Journal of Economic Literature, 59 (2020), 919–1000.CrossRefGoogle Scholar
Goodman, J. K.; Cryder, C. E.; and Cheema, A.. “Data Collection in a Flat World: The Strengths and Weaknesses of Mechanical Turk Samples.” Journal of Behavioral Decision Making, 26 (2013), 213–224.CrossRefGoogle Scholar
Goodman, J. K., and Paolacci, G.. “Crowdsourcing Consumer Research.” Journal of Consumer Research, 44 (2017), 196–210.CrossRefGoogle Scholar
Grinblatt, M., and Han, B.. “The Disposition Effect and Momentum.” Technical Report, National Bureau of Economic Research (2002).Google Scholar
Grinblatt, M., and Han, B.. “Prospect Theory, Mental Accounting, and Momentum.” Journal of Financial Economics, 78 (2005), 311–339.CrossRefGoogle Scholar
Grossman, S. J., and Stiglitz, J. E.. “On the Impossibility of Informationally Efficient Markets.” American Economic Review, 70 (1980), 393–408.Google Scholar
Gurnett, K. “Tax Cuts Bring No Jobs, Says Analyst.” Times Union (Dec. 11, 1995).Google Scholar
Heckman, J.; Ichimura, H.; Smith, J.; and Todd, P.. “Characterizing Selection Bias Using Experimental Data.” Technical Report, National Bureau of Economic Research (1998).Google Scholar
Heckman, J. J.; Ichimura, H.; and Todd, P. E.. “Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme.” Review of Economic Studies, 64 (1997), 605–654.CrossRefGoogle Scholar
Heimer, R., and Imas, A.. “Biased by Choice: How Financial Constraints Can Reduce Financial Mistakes.” Review of Financial Studies, 35 (2021), 1643–1681.CrossRefGoogle Scholar
Heimer, R. Z. “Peer Pressure: Social Interaction and the Disposition Effect.” Review of Financial Studies, 29 (2016), 3177–3209.CrossRefGoogle Scholar
Heimer, R. Z.; Myrseth, K. O. R.; and Schoenle, R. S.. “YOLO: Mortality Beliefs and Household Finance Puzzles.” Journal of Finance, 74 (2019), 2957–2996.CrossRefGoogle Scholar
Hirshleifer, D., and Teoh, S. H.. “Limited Attention, Information Disclosure, and Financial Reporting.” Journal of Accounting and Economics, 36 (2003), 337–386.CrossRefGoogle Scholar
Ho, D. E.; Imai, K.; King, G.; and Stuart, E. A.. “Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference.” Political Analysis, 15 (2007), 199–236.CrossRefGoogle Scholar
Hryshko, D.; Luengo-Prado, M. J.; and Sørensen, B. E.. “House Prices and Risk Sharing.” Journal of Monetary Economics, 57 (2010), 975–987.CrossRefGoogle Scholar
Hu, X. “Portfolio Choices for Homeowners.” Journal of Urban Economics, 58 (2005), 114–136.CrossRefGoogle Scholar
Ingersoll, J. E., and Jin, L. J.. “Realization Utility with Reference-Dependent Preferences.” Review of Financial Studies, 26 (2013), 723–767.CrossRefGoogle Scholar
Ivković, Z.; Poterba, J.; and Weisbenner, S.. “Tax-Motivated Trading by Individual Investors.” American Economic Review, 95 (2005), 1605–1630.CrossRefGoogle Scholar
Ivkovic, Z.; Sialm, C.; and Weisbenner, S.. “Portfolio Concentration and the Performance of Individual Investors.” Journal of Financial and Quantitative Analysis, 43 (2008), 613–656.CrossRefGoogle Scholar
Ivković, Z., and Weisbenner, S.. “Local Does as Local Is: Information Content of the Geography of Individual Investors’ Common Stock Investments.” Journal of Finance, 60 (2005), 267–306.Google Scholar
Jegadeesh, N., and Titman, S.. “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency.” Journal of Finance, 48 (1993), 65–91.CrossRefGoogle Scholar
Kaustia, M. “Disposition Effect.” In Behavioral Finance: Investors, Corporations, and Markets, Baker, H. K. and Nofsinger, J. R., eds. Hoboken, NJ: John Wiley & Sons (2010), 171–189.CrossRefGoogle Scholar
Kuziemko, I.; Norton, M. I.; Saez, E.; and Stantcheva, S.. “How Elastic are Preferences for Redistribution? Evidence from Randomized Survey Experiments.” American Economic Review, 105 (2015), 1478–1508.CrossRefGoogle Scholar
Lakonishok, J., and Smidt, S.. “Volume for Winners and Losers: Taxation and Other Motives for Stock Trading.” Journal of Finance, 41 (1986), 951–974 (in English).CrossRefGoogle Scholar
Love, D. A. “The Effect of Marital Status and Children on Savings and Portfolio Choice.” Review of Financial Studies, 23 (2010), 385–432.CrossRefGoogle Scholar
Ludwig, A., and Sløk, T.. “The Relationship Between Stock Prices, House Prices and Consumption in OECD Countries.” BE Journal of Macroeconomics, 4 (2004), 1–28.Google Scholar
Lusardi, A., and Mitchell, O. S.. “Planning and Financial Literacy: How Do Women Fare?” American Economic Review, 98 (2008), 413–417.CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “Financial Literacy and Planning: Implications for Retirement Wellbeing.” Technical Report, National Bureau of Economic Research (2011).Google Scholar
Mason, W., and Suri, S.. “Conducting Behavioral Research on Amazon’s Mechanical Turk.” Behavior Research Methods, 44 (2012), 1–23.CrossRefGoogle ScholarPubMed
Mauro, F. J. “New York Tax Cuts: Asking for Trouble.” Newsday (June 19, 1995).Google Scholar
Meier, K.; Niessen-Ruenzi, A.; and Ruenzi, S.. “The Impact of Role Models on Women’s Self-Selection in Competitive Environments.” Working Paper, Mannheim University (2018).CrossRefGoogle Scholar
Meng, J., and Weng, X.. “Can Prospect Theory Explain the Disposition Effect? A New Perspective on Reference Points.” Management Science, 64 (2017), 3331–3351.CrossRefGoogle Scholar
Morrison, W., and Taubinsky, D.. “Rules of Thumb and Attention Elasticities: Evidence from Under- and Overreaction to Taxes.” Technical Report, National Bureau of Economic Research (2019).CrossRefGoogle Scholar
Narwold, A., and Sonstelie, J.. “State Income Taxes and Homeownership: A Test of the Tax Arbitrage Theory.” Journal of Urban Economics, 36 (1994), 249–277.Google Scholar
Neyman, J. “On the Application of Probability Theory to Agricultural Experiments. Essay on Principles.” Statistical Science, 5 (1923), 465–472.Google Scholar
Nicolosi, G.; Peng, L.; and Zhu, N.. “Do Individual Investors Learn from Their Trading Experience?” Journal of Financial Markets, 12 (2009), 317–336.Google Scholar
Novy-Marx, R., and Velikov, M.. “A Taxonomy of Anomalies and Their Trading Costs.” Review of Financial Studies, 29 (2015), 104–147.CrossRefGoogle Scholar
Odean, T. “Are Investors Reluctant to Realize Their Losses?” Journal of Finance, 53 (1998), 1775–1798.CrossRefGoogle Scholar
Olea, J. L. M., and Strzalecki, T.. “Axiomatization and Measurement of Quasi-Hyperbolic Discounting.” Quarterly Journal of Economics, 129 (2014), 1449–1499.CrossRefGoogle Scholar
Orne, M. T. “On the Social Psychology of the Psychological Experiment: With Particular Reference to Demand Characteristics and Their Implications.” American Psychologist, 17 (1962), 776.CrossRefGoogle Scholar
Parsons, C. A.; Sabbatucci, R.; and Titman, S.. “Geographic Lead–Lag Effects.” Review of Financial Studies, 33 (2018), 4721–4770.CrossRefGoogle Scholar
Pierog, K. “Study Says Michigan Tax Cut Plan May Leave State in the Red.” Bond Buyer 29594 (6) (Feb. 24, 1995).Google Scholar
Ritter, J. R. “The Buying and Selling Behavior of Individual Investors at the Turn of the Year.” Journal of Finance, 43 (1988), 701–717.CrossRefGoogle Scholar
Rubin, D. B. “Estimating Causal Effects of Treatments in Randomized and Nonrandomized Studies.” Journal of Educational Psychology, 66 (1974), 688.Google Scholar
Saad, L. “What Percentage of Americans Owns Stock?” (2019). https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx.Google Scholar
Seasholes, M. S., and Zhu, N.. “Individual Investors and Local Bias.” Journal of Finance, 65 (2010), 1987–2010.CrossRefGoogle Scholar
Seru, A.; Shumway, T.; and Stoffman, N.. “Learning by Trading.” Review of Financial Studies, 23 (2010), 705–739.CrossRefGoogle Scholar
Shefrin, H., and Statman, M.. “The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence.” Journal of Finance, 40 (1985), 777–790.CrossRefGoogle Scholar
Shefrin, H. M., and Statman, M.. “Explaining Investor Preference for Cash Dividends.” Journal of Financial Economics, 13 (1984), 253–282 (in English).CrossRefGoogle Scholar
Shumway, T., and Wu, G.. “Does Disposition Drive Momentum?” Working Paper, University of Michigan (2005).CrossRefGoogle Scholar
Simon, H. A. “A Behavioral Model of Rational Choice.” Quarterly Journal of Economics, 69 (1955), 99–118.CrossRefGoogle Scholar
Sjoquist, D. L., and Walker, M. B.. “The Marriage Tax and the Rate and Timing of Marriage.” National Tax Journal, 48 (1995), 547–558.CrossRefGoogle Scholar
Taubinsky, D., and Rees-Jones, A.. “Attention Variation and Welfare: Theory and Evidence from a Tax Salience Experiment.” Review of Economic Studies, 85 (2017), 2462–2496.CrossRefGoogle Scholar
Thaler, R. “Mental Accounting and Consumer Choice.” Marketing Science, 4 (1985), 199–214.CrossRefGoogle Scholar
Thaler, R. H. “Mental Accounting Matters.” Journal of Behavioral Decision Making, 12 (1999), 183–206.3.0.CO;2-F>CrossRefGoogle Scholar
Thaler, R. H., and Shefrin, H. M.. “An Economic Theory of Self-Control.” Journal of Political Economy, 89 (1981), 392–406.CrossRefGoogle Scholar
Thaler, R. H., and Sunstein, C. R.. Nudge: Improving Decisions About Health, Wealth, and Happiness. New Haven, CT: Yale University Press (2008).Google Scholar
Vissing-Jorgensen, A. “Towards an Explanation of Household Portfolio Choice Heterogeneity: Nonfinancial Income and Participation Cost Structures.” Technical Report, National Bureau of Economic Research (2002).CrossRefGoogle Scholar
Wang, Q., and Pirinsky, C. A.. “Geographic Location and Corporate Finance: A Review.” Singapore: World Scientific Publishing Co. Pte. Ltd. (2010).Google Scholar
Weber, E. U.; Blais, A.-R.; and Betz, N. E.. “A Domain-Specific Risk-Attitude Scale: Measuring Risk Perceptions and Risk Behaviors.” Journal of Behavioral Decision Making, 15 (2002), 263–290.CrossRefGoogle Scholar
Weber, M., and Camerer, C. F.. “The Disposition Effect in Securities Trading: An Experimental Analysis.” Journal of Economic Behavior & Organization, 33 (1998), 167–184.Google Scholar
Weeks, G. “Engler Ceremony Hypes His Promise to Deliver Michigan Tax Cuts – All 14, er, 15 of Them.” Detroit News (Mar. 9, 1995).Google Scholar
White, H. “A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity.” Econometrica, 48 (1980), 817–838.CrossRefGoogle Scholar
Yao, R., and Zhang, H. H.. “Optimal Consumption and Portfolio Choices with Risky Housing and Borrowing Constraints.” Review of Financial Studies, 18 (2005), 197–239.CrossRefGoogle Scholar
Zelenak, L. “Marriage and the Income Tax.” Southern California Law Review, 67 (1993), 339.Google Scholar
Supplementary material: PDF

Bazley et al. supplementary material

Bazley et al. supplementary material

Download Bazley et al. supplementary material(PDF)
PDF 172.1 KB