Harry Huizinga, Johannes Voget, Wolf Wagner, 31 October 2012

Capital gains taxation increases the cost of capital with potentially negative implications for growth. This column uses data from international mergers and acquisitions to show that a higher capital gains tax rate in the acquiring country reduces the international takeover price. It implies a discount of 3.4% in the acquisition prices paid by US acquiring firms, given the US capital gains tax rate of 15%.

Cédric Tille, 11 October 2008

There has been a lively debate over the sustainability of global imbalances in recent years. This column argues that capital gains on international assets and liabilities are an important ingredient in any assessment of the sustainability of global imbalances.

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