The Impact of Financial Transactions Taxes on Money Demand in Colombia
AbstractSome countries in Latin America have introduced a tax on bank withdrawals in order to increase revenue. The debit tax has usually been levied in periods of economic turbulence. This paper analyzes the effects of such a tax on real cash holdings and on balances of different types of bank accounts in Colombia. The paper analyzes data for the period 1994 to 2007 and then verifies the robustness of the model using only the data from 2000 to 2007, thereby eliminating the economic crisis of the late 1990s. The results show that even though the tax caused a decrease in checking account balances, the changes produced in total balances of real cash after 2001 cannot be attributed to the debit tax. However, an increase in the rate of growth of savings account balances can be attributed to it, suggesting a substitution from checking toward savings accounts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Latin American Journal of Economics-formerly Cuadernos de Economía.
Volume (Year): 48 (2011)
Issue (Month): 1 ()
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amparo García).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.