You are invited to join the weekly Nuremberg Research Seminar in Economics on 15 July 2026, from 13.15 to 14.45 pm. The seminar will be held in room LG 4.154. Maximilian Todtenhaupt (University of Hannover) will be talking about “Dividend Taxes and Consumption” (joint with M. Jacob and R. Michaely)
More information can be found here:
We examine the effect of dividend taxes on shareholder consumption using ad-ministrative data from Norway. Exploiting a large dividend tax increase, we show that higher dividend taxes lead to a persistent decline in consumption of shareholders due to reduced disposable income from payouts. Reduced payouts lead to increased retained earnings in the firms owned by affected shareholders. These funds are not used for productive investment but rather substitute for pri-vate saving outside the firm. We also show that shareholders with controlling ownership respond to the dividend tax increase by moving consumption into the firms they own.