Do Taxes Matter in the CAPM?

The traditional literature on the CAPM assumes that investor's tax payments simply vanish from the model. This assumption is not at all consistent with the actual behavior of the Treasury. The theory of general equilibrium states that an interest rate rf = 0 will not affect prices if taxes are introduced. We show that this result can be extended to the CAPM if the tax payments are redistributed among investors.

Scoping Electronic Communication Privacy Rules: Data, Services and Values

We use electronic communication networks for more than simply traditional telecommunications: we access the news, buy goods online, file our taxes, contribute to public debate, and more. As a result, a wider array of privacy interests is implicated for users of electronic communications networks and services. . This development calls into question the scope of electronic communications privacy rules. This paper analyses the scope of these rules, taking into account the rationale and the historic background of the European electronic communications privacy framework. We develop a framework for analysing the scope of electronic communications privacy rules using three approaches: (i) a service-centric approach, (ii) a data-centric approach, and (iii) a value-centric approach. We discuss the strengths and weaknesses of each approach. The current e-Privacy Directive contains a complex blend of the three approaches, which does not seem to be based on a thorough analysis of their strengths and weaknesses. The upcoming review of the directive announced by the European Commission provides an opportunity to improve the scoping of the rules.