THE EFFECTS OF INCOME, WEALTH, AND CAPITAL GAINS TAXATION ON RISK-TAKING**The research described in this paper was carried out under a grant from the National Science Foundation. After this paper was completed, a paper by J. Mossin, “Taxation and Risk-Taking: An Expected Utility Approach.” Economica, XXXV (Feb. 1968), containing some of the results of Sections IV and VI was published. I am indebted to D. Cass and A. Klevorick for their helpful comments.