Work

Who Sold During the Crash of 2008-9? Evidence from Tax-Return Data on Daily Sales of Stock

Year: 2016

Type: report

Abstract: We examine individual stock sales from 2008 to 2009 using population tax return data.The share of sales by the top 0.1 percent of income recipients and other top income groups rose sharply following the Lehman Brothers bankruptcy and remained elevated throughout the financial crisis.Sales by top income and older age groups were relatively more responsive to increased stock market volatility.Volatility-driven sales were not concentrated in any one sector, but mutual fund sales responded more strongly to increased volatility than stock sales.Additional analysis suggests that gross sales in tax return data are informative about unobserved net sales.

Source: National Bureau of Economic Research

DOI: 10.3386/w22209

Authors: Jeffrey Hoopes, Patrick Langetieg, Stefan Nagel, Daniel Reck, Joel Slemrod, Bryan Stuart

Institutions: National Bureau of Economic Research, University of Michigan, National Tax Association, The Ohio State University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2344664229

Cites: 34

Cited by: 23

Related to: 10