Hoopes, Jeffrey L., Langetieg, Patrick, Nagel, Stefan, Reck, Daniel 
ORCID: 0000-0002-5732-4706, Slemrod, Joel and Stuart, Bryan A.
(2022)
Who sells during a crash? Evidence from tax return data on daily sales of stock.
Economic Journal, 132 (641).
299 - 325.
ISSN 0013-0133
Abstract
Using United States tax return data containing the universe of individual taxable stock sales from 2008 to 2009, we examine which individuals increased their sale of stocks following episodes of market tumult. We find that the increase was disproportionately concentrated among investors in the top 1% and top 0.1% of the overall income distribution, retired individuals and individuals at the very top of the dividend income distribution. Our estimates suggest that, following the day when Lehman Brothers collapsed, taxpayers in the top 0.1% sold $1.7 billion more in stocks than individuals in the bottom 75%. This difference is equal to 89% of average daily sales by taxpayers in the top 0.1%.
| Item Type: | Article |
|---|---|
| Official URL: | https://academic.oup.com/ej |
| Additional Information: | © 2021 Published by Oxford University Press on behalf of Royal Economic Society. |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | G - Financial Economics > G1 - General Financial Markets > G10 - General H - Public Economics > H1 - Structure and Scope of Government > H10 - General |
| Date Deposited: | 16 Dec 2022 12:39 |
| Last Modified: | 01 May 2024 01:57 |
| URI: | http://eprints.lse.ac.uk/id/eprint/117631 |
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