… gain and investor’s age. Contrary to standard financial advice, … optimal equity holding
increases well into an investor’s lifetime in our model due to the forgiveness of capital gains taxes …

… effect of jumps on optimal consumption and portfolio choice strategy… optimal consumption
and portfolio decisions in various cases. We find that: (i) the optimal fractions of wealth invested …

… which ensures that the value function of the Merton optimal consumption-investment problem
(the case λ = μ = α = 0) is finite. In particular, the value function V is finite under condition (…

… an optimal consumption and investment model with asymmetric longterm/short-term tax rates.
… We show that the optimal consumption and investment policy is qualitatively different from …

… One might think, for example, that because they tax capital income, income taxes are
better at capturing the benefits of inheritances. Part III shows that if correctly implemented, a …

… avail themselves of these tax avoidance activities, there are ways, in a perfect capital market,
by … Accordingly, any analysis of the effects of capital taxation must focus on imperfect capital …

… With perfect and riskless capital markets, bequest taxes and capital income taxes are equivalent
in … However, with heterogeneous rates of returns, capital income taxation can provide …

… This section considers the optimal Ramsey taxation policy when the taxing authority has
access to tax rates on labor income, capital income, and consumption, but where the …

… And the long run average exposure will typically diverge from the ideal proportions, in
contrast with the optimal policy. Finally, we consider optimal strategies with capital gains taxes. …

… of capital income taxation, both accrual forms of taxation and taxation of realized capital gains…
We will assume below that the optimal consumption path is such that all dissavings follows …