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Essays On Capital Gains, Household Consumption And Corporate Payout Policy, Chris Mitchell
Essays On Capital Gains, Household Consumption And Corporate Payout Policy, Chris Mitchell
Electronic Thesis and Dissertation Repository
My dissertation consists of three chapters related to accrued capital gains. The first essay is concerned with estimating the marginal propensity to consume (MPC) out of accrued capital gains on owner-occupied housing in Canada. Its main methodological contribution lies in using a hedonic price equation to value these gains. The results suggest that for every 1 dollar increase in expected housing capital gains households increase total consumption by approximately 8.2 cents, and increase non-durable consumption by 6.2 cents.
The second essay of this thesis proposes a model of economic behaviour that can explain why corporations pay dividends despite their tax …