SIFR Research Report Series, Institute for Financial Research
No 70:
Tax Arbitrage with Risk and Effort Aversion - Swedish Lottery Bonds 1970-1990
Kristian Rydqvist ()
Abstract: Swedish lottery bonds are valuable tax shelters before the
tax reform of 1991. By trading around the coupon lottery, high-tax
investors with capital gains from the stock market shift their tax
liability to low-tax investors. The uncertainty of the coupon lottery and
the effort of verifying the winning lottery bond numbers are a nuisance to
tax traders. We investigate how the Treasury (issuer), market makers
(banks), and lottery bond investors respond to those frictions.
Keywords: Tax arbitrage; Coupon lottery; Lottery number checking; Ex-dividend day; Turn-of-the-year effect; Rationing; Underpricing; (follow links to similar papers)
JEL-Codes: G12; G18; (follow links to similar papers)
31 pages, April 15, 2010
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
sifr-wp70.pdf 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Anki Helmer ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
