Abstract

Original paper is available at: https://ssrn.com/abstract=2735812 This Internet Appendix contains supplemental material that was not included in Landoni (2018). Section 1 describes in detail the bond pricing model with taxes used to derive the paper's main results, with the aim of allowing an interested reader to reproduce it. Section 1 also highlights similarities and differences vis-a-vis Constantinides and Ingersoll (1984), and provides additional analytical results. Section 2 briefly discusses the consequences of ignoring state taxes.

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