@article{THESIS,
      recid = {12317},
      author = {Hashemi, Arshia},
      title = {Capital Gains Taxation in Private Business},
      publisher = {University of Chicago},
      school = {Ph.D.},
      address = {2024-06},
      number = {THESIS},
      pages = {115},
      abstract = {This paper studies the taxation of realized capital gains  in the decentralized market for private businesses, an  asset class with empirically large unrealized capital  gains. I develop a dynamic heterogeneous agent model of  private business, with incomplete markets, financial  frictions, and an over-the-counter market for bilaterally  exchanging business productivity levels. By influencing the  reservation prices of sellers and buyers, the capital gains  tax affects both exchange allocations and exchange asset  prices. Quantitative analysis suggests that if financial  frictions are severe, then a positive capital gains tax  rate maximizes aggregate productivity. Yet the productivity  gains stem from a decrease in aggregate input demand,  rather than from an increase in aggregate output, which is  necessarily lower under any positive tax rate relative to  that under a zero tax rate.},
      url = {http://knowledge.uchicago.edu/record/12317},
      doi = {https://doi.org/10.6082/uchicago.12317},
}