Taxation of Labor Income and the Demand for Risky Assets
分析劳动收入风险如何影响储蓄与资产组合选择，发现即使劳动收入风险增加总储蓄，也会降低风险资产投资，并论证边际税率上升可通过降低税后劳动收入风险显著增加风险投资。
This article analyzes the effect of labor income risk on the joint saving/portfolio‐composition problem. Given decreasing absolute prudence, we find that even when labor income risk increases overall saving, it tends to lower investment in a risky asset. Applying the theory to public finance, we argue that realistic increases in marginal tax rates on labor can cause large enough reductions in after‐tax labor income risk to cause significant increases in risky investment.