The Societal Benefits of a Financial Transaction Tax
Project funded by own resources
Project title The Societal Benefits of a Financial Transaction Tax
Principal Investigator(s) Berentsen, Aleksander
Project Members Huber, Samuel
Marchesiani, Alessandro
Organisation / Research unit Departement Wirtschaftswissenschaften / Wirtschaftstheorie (Berentsen)
Project Website https://ideas.repec.org/p/zur/econwp/176.html
Project start 01.10.2014
Probable end 30.11.2027
Status Active
Abstract

We investigate the positive and normative implications of a tax on financial market transactions in a dynamic general equilibrium model, where agents face idiosyncratic liquidity shocks and financial trading is essential. Our main finding is that agents' portfolio choices display a pecuniary externality which results in too much trading. We calibrate the model to U.S. data and find an optimal tax rate of 2.5 percent. Imposing this tax reduces trading in financial markets by 30 percent

Financed by University funds

Published results ()

  ID Autor(en) Titel ISSN / ISBN Erschienen in Art der Publikation
3693123  Berentsen, Aleksander; Huber, Samuel; Marchesiani, Alessandro  The societal benefits of a financial transaction tax  0014-2921 ; 1873-572X  European Economic Review  Publication: JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift) 

Cooperations ()

  ID Kreditinhaber Kooperationspartner Institution Laufzeit - von Laufzeit - bis
2740257  Berentsen, Aleksander  Huber, Samuel  University of Basel  01.10.2014  30.11.2015 
2740258  Berentsen, Aleksander  Marchesiani, Alessandro  University of Bath  01.10.2014  30.11.2015 
   

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