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Empire-Building, Underinvestment and Capital Gain Taxation
Miglo, Anton
Publication:Journal of Current Issues in Finance, Business and Economics
Date:2010
Description:
This note provides an explanation for why tax rates on captial gains are usually lower than ordinary income tax rates based on manager's agency problem related to "empire-building" and the underinvestment problem.
Citation:Miglo, A. (2010). Empire-Building, Underinvestment and Capital Gain Taxation. Journal of Current Issues in Finance, Business and Economics, 2(4), 1-10.
