Financial sector taxation: Financial activities tax or financial transaction tax?

Financial Transaction Tax and Financial Market Stability with Diverse Beliefs

This papers studies the impact of a financial transactions tax on the trading volume and asset price volatility in a model with heterogeneous beliefs. To model heterogeneous beliefs we follow Kurz (1994, 1997) and restrict the class of beliefs to the subset of rational beliefs. We study a tax on bond and asset purchases. The simulated model shows that the introduction of a transaction tax resul...

The Effects of a Financial Transaction Tax in an Artificial Financial Market

We investigate the effects of a Financial Transaction Tax (FTT) in an order-driven artificial financial market. FTTs are meant to limit short-term speculative behavior by reducing the amount of excess liquidity in the system. To quantify these effects, adjustments in trading strategies and their effects on liquidity need to be taken into account. We model an agentbased continuous double-auction...

Tax Simplification and Financial Markets

Four tax reforms have been proposed in recent years: BradleyGephardt, Kemp-Kasten, Treasury I and Treasury II. These reforms seek to improve economic efficiency by taxing different capital assets and sources of income more equally. Each reform is purported to be revenueneutral from the perspective of the U.S. Treasury ,and distributionally neutral across households. While this alleged neutralit...

Title : The Effects of a Financial Transaction Tax in an Artificial Financial

We investigate the effects of a Financial Transaction Tax (FTT) in an order-driven artificial financial market. FTTs are meant to limit short-term speculative behavior by reducing the amount of excess liquidity in the system. To quantify these effects, adjustments in trading strategies and their effects on liquidity need to be taken into account. We model an agentbased continuous double-auction...

Revisiting the Case for a Tobin Tax Post Asian Crisis: a Financial Safeguard or Financial Bonanza?