Berentsen, Aleksander
[VerfasserIn]
;
Huber, Samuel
[Sonstige Person, Familie und Körperschaft];
Marchesiani, Alessandro
[Sonstige Person, Familie und Körperschaft]
The Societal Benefit of a Financial Transaction Tax
Erschienen in:University of Zurich, Department of Economics, Working Paper ; No. 176
Umfang:
1 Online-Ressource (37 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2513370
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 16, 2016 erstellt
Beschreibung:
We provide a novel justification for a financial transaction tax for economies, where agents face stochastic consumption opportunities. A financial transaction tax makes it more costly for agents to readjust their portfolios of liquid and illiquid assets in response to these liquidity shocks, which increases the demand for - and the price of liquid assets. The higher price improves liquidity insurance and welfare for other market participants. We calibrate the model to U.S. data and find that the optimal financial transaction tax is 1.6 percent and that it reduces the volume of financial trading by 17 percent