CAPITAL GAINS REDUX: WHY HOLDING PERIODS MATTER
Changes in the tax rate on capital gains have profound effects on the volume of gains individuals choose to realize. While much of the recent policy debate has focused upon the magnitude of taxpayer response, this paper investigates the mechanism that underlies it—changes in the holding period of ca...
Gespeichert in:
| Veröffentlicht in: | National tax journal 1992-03, Vol.45 (1), p.53-76 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 76 |
|---|---|
| container_issue | 1 |
| container_start_page | 53 |
| container_title | National tax journal |
| container_volume | 45 |
| creator | COOK, ERIC W. O'HARE, JOHN F. |
| description | Changes in the tax rate on capital gains have profound effects on the volume of gains individuals choose to realize. While much of the recent policy debate has focused upon the magnitude of taxpayer response, this paper investigates the mechanism that underlies it—changes in the holding period of capital assets. A simple model of asset turnover is presented that captures, in an intuitive way, some of the variables that influence taxpayers to sell appreciated assets. The theory is tested using a rich and unique data source and the results are used in a dynamic simulation model of realizations and revenues. Small changes in the (mean) length of time assets are held translate into dramatic changes in aggregate realizations. The implications of the theory presented here are strong, empirically verifiable, and generally predict recent historical experience well. |
| doi_str_mv | 10.1086/NTJ41788946 |
| format | Article |
| fullrecord | <record><control><sourceid>gale_cross</sourceid><recordid>TN_cdi_crossref_primary_10_1086_NTJ41788946</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A12307256</galeid><jstor_id>41788946</jstor_id><sourcerecordid>A12307256</sourcerecordid><originalsourceid>FETCH-LOGICAL-c438t-c7d8900b429d53e6322b51ba3c4b6e9497cc789654c6c7757e36ec828db5d9fe3</originalsourceid><addsrcrecordid>eNp10c9PwjAUB_DGaCKiJ88mi56MTvpra-ttgQkzCARG1NOydR2OAMMWDv731mAAE0zz0qTvk2_z8gC4RPABQe43evEzRYxzQf0jUEOCUpdRxo5BDULMXVvkFJwZM4UQIitroNEMBlEcdJ12EPVGzjBsjd8endfOu9Ppd1tRr-0MwmHUb42clyCOw-E5OCnSmVEXv3cdjJ_CuNlxu_121Ay6rqSEr1zJci4gzCgWuUeUTzDOPJSlRNLMV4IKJiXjwveo9CVjHlPEV5JjnmdeLgpF6uB6k7vU1edamVUyrdZ6Yb9MMCRYYI9wi27-Q4hA6iFkx95FTdKZSspFUa10KuelkUmAMIEMe75F9wfQRC2UTmfVQhWlfd7n7gFuT67mpTzk7zZe6soYrYpkqct5qr8SBJOf1SV7q7P6dqPX8qOU6aRaamXMbri_9mpjp2ZV6W3stv8N3SuZ9Q</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1304511002</pqid></control><display><type>article</type><title>CAPITAL GAINS REDUX: WHY HOLDING PERIODS MATTER</title><source>Periodicals Index Online</source><source>EBSCOhost Business Source Complete</source><source>JSTOR Archive Collection A-Z Listing</source><source>EBSCOhost Education Source</source><source>Alma/SFX Local Collection</source><creator>COOK, ERIC W. ; O'HARE, JOHN F.</creator><creatorcontrib>COOK, ERIC W. ; O'HARE, JOHN F.</creatorcontrib><description>Changes in the tax rate on capital gains have profound effects on the volume of gains individuals choose to realize. While much of the recent policy debate has focused upon the magnitude of taxpayer response, this paper investigates the mechanism that underlies it—changes in the holding period of capital assets. A simple model of asset turnover is presented that captures, in an intuitive way, some of the variables that influence taxpayers to sell appreciated assets. The theory is tested using a rich and unique data source and the results are used in a dynamic simulation model of realizations and revenues. Small changes in the (mean) length of time assets are held translate into dramatic changes in aggregate realizations. The implications of the theory presented here are strong, empirically verifiable, and generally predict recent historical experience well.</description><identifier>ISSN: 0028-0283</identifier><identifier>EISSN: 1944-7477</identifier><identifier>DOI: 10.1086/NTJ41788946</identifier><identifier>CODEN: NTXJAC</identifier><language>eng</language><publisher>Chicago, Ill: National Tax Association</publisher><subject>Analysis ; Asset management ; Capital assets ; Capital gains ; Capital gains tax ; Capital gains taxes ; Coefficients ; Effects ; Estimated taxes ; Income taxes ; Investors ; Mathematical models ; Statistical analysis ; Tax rates ; Taxation ; Taxpayers ; Taxpaying ; Transaction costs</subject><ispartof>National tax journal, 1992-03, Vol.45 (1), p.53-76</ispartof><rights>Copyright 1992 National Tax Association—Tax Institute of America</rights><rights>1992 National Tax Association. All rights reserved.</rights><rights>COPYRIGHT 1992 University of Chicago Press</rights><rights>Copyright National Tax Association Mar 1992</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c438t-c7d8900b429d53e6322b51ba3c4b6e9497cc789654c6c7757e36ec828db5d9fe3</citedby><cites>FETCH-LOGICAL-c438t-c7d8900b429d53e6322b51ba3c4b6e9497cc789654c6c7757e36ec828db5d9fe3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/41788946$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/41788946$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,780,784,803,27869,27924,27925,58017,58250</link.rule.ids></links><search><creatorcontrib>COOK, ERIC W.</creatorcontrib><creatorcontrib>O'HARE, JOHN F.</creatorcontrib><title>CAPITAL GAINS REDUX: WHY HOLDING PERIODS MATTER</title><title>National tax journal</title><description>Changes in the tax rate on capital gains have profound effects on the volume of gains individuals choose to realize. While much of the recent policy debate has focused upon the magnitude of taxpayer response, this paper investigates the mechanism that underlies it—changes in the holding period of capital assets. A simple model of asset turnover is presented that captures, in an intuitive way, some of the variables that influence taxpayers to sell appreciated assets. The theory is tested using a rich and unique data source and the results are used in a dynamic simulation model of realizations and revenues. Small changes in the (mean) length of time assets are held translate into dramatic changes in aggregate realizations. The implications of the theory presented here are strong, empirically verifiable, and generally predict recent historical experience well.</description><subject>Analysis</subject><subject>Asset management</subject><subject>Capital assets</subject><subject>Capital gains</subject><subject>Capital gains tax</subject><subject>Capital gains taxes</subject><subject>Coefficients</subject><subject>Effects</subject><subject>Estimated taxes</subject><subject>Income taxes</subject><subject>Investors</subject><subject>Mathematical models</subject><subject>Statistical analysis</subject><subject>Tax rates</subject><subject>Taxation</subject><subject>Taxpayers</subject><subject>Taxpaying</subject><subject>Transaction costs</subject><issn>0028-0283</issn><issn>1944-7477</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1992</creationdate><recordtype>article</recordtype><sourceid>HYQOX</sourceid><sourceid>K30</sourceid><sourceid>8G5</sourceid><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>AZQEC</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><sourceid>GNUQQ</sourceid><sourceid>GUQSH</sourceid><sourceid>M2O</sourceid><recordid>eNp10c9PwjAUB_DGaCKiJ88mi56MTvpra-ttgQkzCARG1NOydR2OAMMWDv731mAAE0zz0qTvk2_z8gC4RPABQe43evEzRYxzQf0jUEOCUpdRxo5BDULMXVvkFJwZM4UQIitroNEMBlEcdJ12EPVGzjBsjd8endfOu9Ppd1tRr-0MwmHUb42clyCOw-E5OCnSmVEXv3cdjJ_CuNlxu_121Ay6rqSEr1zJci4gzCgWuUeUTzDOPJSlRNLMV4IKJiXjwveo9CVjHlPEV5JjnmdeLgpF6uB6k7vU1edamVUyrdZ6Yb9MMCRYYI9wi27-Q4hA6iFkx95FTdKZSspFUa10KuelkUmAMIEMe75F9wfQRC2UTmfVQhWlfd7n7gFuT67mpTzk7zZe6soYrYpkqct5qr8SBJOf1SV7q7P6dqPX8qOU6aRaamXMbri_9mpjp2ZV6W3stv8N3SuZ9Q</recordid><startdate>19920301</startdate><enddate>19920301</enddate><creator>COOK, ERIC W.</creator><creator>O'HARE, JOHN F.</creator><general>National Tax Association</general><general>The University of Chicago Press</general><general>University of Chicago Press</general><scope>AAYXX</scope><scope>CITATION</scope><scope>ILT</scope><scope>ABKTN</scope><scope>ACNBF</scope><scope>GHXMH</scope><scope>GPCCI</scope><scope>HYQOX</scope><scope>IOIBA</scope><scope>JVXPA</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>~P6</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7X1</scope><scope>7XB</scope><scope>87Z</scope><scope>88C</scope><scope>8A9</scope><scope>8AO</scope><scope>8BJ</scope><scope>8FI</scope><scope>8FJ</scope><scope>8FK</scope><scope>8FL</scope><scope>8G5</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ANIOZ</scope><scope>AZQEC</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FRAZJ</scope><scope>FRNLG</scope><scope>FYUFA</scope><scope>F~G</scope><scope>GHDGH</scope><scope>GNUQQ</scope><scope>GUQSH</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>M0T</scope><scope>M2O</scope><scope>MBDVC</scope><scope>PADUT</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>PYYUZ</scope><scope>Q9U</scope><scope>S0X</scope></search><sort><creationdate>19920301</creationdate><title>CAPITAL GAINS REDUX: WHY HOLDING PERIODS MATTER</title><author>COOK, ERIC W. ; O'HARE, JOHN F.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c438t-c7d8900b429d53e6322b51ba3c4b6e9497cc789654c6c7757e36ec828db5d9fe3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1992</creationdate><topic>Analysis</topic><topic>Asset management</topic><topic>Capital assets</topic><topic>Capital gains</topic><topic>Capital gains tax</topic><topic>Capital gains taxes</topic><topic>Coefficients</topic><topic>Effects</topic><topic>Estimated taxes</topic><topic>Income taxes</topic><topic>Investors</topic><topic>Mathematical models</topic><topic>Statistical analysis</topic><topic>Tax rates</topic><topic>Taxation</topic><topic>Taxpayers</topic><topic>Taxpaying</topic><topic>Transaction costs</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>COOK, ERIC W.</creatorcontrib><creatorcontrib>O'HARE, JOHN F.</creatorcontrib><collection>CrossRef</collection><collection>Gale OneFile: LegalTrac</collection><collection>Periodicals Archive Online JSTOR Titles</collection><collection>Periodicals Archive Online Collection 6 (2022)</collection><collection>Periodicals Index Online Segment 09</collection><collection>Periodicals Index Online Segment 10</collection><collection>ProQuest Historical Periodicals</collection><collection>Periodicals Index Online Segment 29</collection><collection>Periodicals Index Online Segment 38</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access & Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access & Build (Plan A) - APAC</collection><collection>Primary Sources Access & Build (Plan A) - Canada</collection><collection>Primary Sources Access & Build (Plan A) - West</collection><collection>Primary Sources Access & Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - Midwest</collection><collection>Primary Sources Access & Build (Plan A) - North Central</collection><collection>Primary Sources Access & Build (Plan A) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>Periodicals Archive Online Collection 6</collection><collection>ProQuest Central (Corporate)</collection><collection>Access via ABI/INFORM (ProQuest)</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>Accounting & Tax Database</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>Healthcare Administration Database (Alumni)</collection><collection>Accounting & Tax Database (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>Hospital Premium Collection</collection><collection>Hospital Premium Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>Research Library (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>Accounting, Tax & Banking Collection</collection><collection>ProQuest Central Essentials</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>International Bibliography of the Social Sciences</collection><collection>Accounting, Tax & Banking Collection (Alumni)</collection><collection>Business Premium Collection (Alumni)</collection><collection>Health Research Premium Collection</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>Health Research Premium Collection (Alumni)</collection><collection>ProQuest Central Student</collection><collection>Research Library Prep</collection><collection>International Bibliography of the Social Sciences</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>Healthcare Administration Database</collection><collection>Research Library</collection><collection>Research Library (Corporate)</collection><collection>Research Library China</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ABI/INFORM Collection China</collection><collection>ProQuest Central Basic</collection><collection>SIRS Editorial</collection><jtitle>National tax journal</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>COOK, ERIC W.</au><au>O'HARE, JOHN F.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>CAPITAL GAINS REDUX: WHY HOLDING PERIODS MATTER</atitle><jtitle>National tax journal</jtitle><date>1992-03-01</date><risdate>1992</risdate><volume>45</volume><issue>1</issue><spage>53</spage><epage>76</epage><pages>53-76</pages><issn>0028-0283</issn><eissn>1944-7477</eissn><coden>NTXJAC</coden><abstract>Changes in the tax rate on capital gains have profound effects on the volume of gains individuals choose to realize. While much of the recent policy debate has focused upon the magnitude of taxpayer response, this paper investigates the mechanism that underlies it—changes in the holding period of capital assets. A simple model of asset turnover is presented that captures, in an intuitive way, some of the variables that influence taxpayers to sell appreciated assets. The theory is tested using a rich and unique data source and the results are used in a dynamic simulation model of realizations and revenues. Small changes in the (mean) length of time assets are held translate into dramatic changes in aggregate realizations. The implications of the theory presented here are strong, empirically verifiable, and generally predict recent historical experience well.</abstract><cop>Chicago, Ill</cop><pub>National Tax Association</pub><doi>10.1086/NTJ41788946</doi><tpages>24</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0028-0283 |
| ispartof | National tax journal, 1992-03, Vol.45 (1), p.53-76 |
| issn | 0028-0283 1944-7477 |
| language | eng |
| recordid | cdi_crossref_primary_10_1086_NTJ41788946 |
| source | Periodicals Index Online; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; EBSCOhost Education Source; Alma/SFX Local Collection |
| subjects | Analysis Asset management Capital assets Capital gains Capital gains tax Capital gains taxes Coefficients Effects Estimated taxes Income taxes Investors Mathematical models Statistical analysis Tax rates Taxation Taxpayers Taxpaying Transaction costs |
| title | CAPITAL GAINS REDUX: WHY HOLDING PERIODS MATTER |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-01T02%3A09%3A13IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=CAPITAL%20GAINS%20REDUX:%20WHY%20HOLDING%20PERIODS%20MATTER&rft.jtitle=National%20tax%20journal&rft.au=COOK,%20ERIC%20W.&rft.date=1992-03-01&rft.volume=45&rft.issue=1&rft.spage=53&rft.epage=76&rft.pages=53-76&rft.issn=0028-0283&rft.eissn=1944-7477&rft.coden=NTXJAC&rft_id=info:doi/10.1086/NTJ41788946&rft_dat=%3Cgale_cross%3EA12307256%3C/gale_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1304511002&rft_id=info:pmid/&rft_galeid=A12307256&rft_jstor_id=41788946&rfr_iscdi=true |