Advanced Search
MyIDEAS: Login

A General Financial Transaction Tax: The Concept, its Justification and Effects

Contents:

Author Info

  • Stephan Schulmeister

    (WIFO)

Abstract

Initially this paper outlines the concept of a tax on all transactions to do with financial assets. It summarises the main arguments for and against such a tax. The next part documents the relevant empirical evidence necessary to be able to evaluate the arguments. In particular the development of financial transactions is documented, as well as the dynamic of exchange rates, raw material prices and share prices. The data would suggest that the introduction of a financial transaction tax would reduce the instability of such prices. Indeed it would reduce not only its short term volatility but also the longer term upwards and downwards trends ("bull markets" and "bear markets"). Finally the potential revenue of a transaction tax is estimated for three different rates of tax (0,1 percent, 0,05 percent and 0,01 percent). Due to the high trading volumes on the financial markets the revenue from such a tax would be considerable: with a tax rate of 0.05 percent the revenues in Germany were between 0.7 percent and 1.5 percent of GDP and in Europe between 0.9 percent and 2.1 percent.

Download Info

If 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.
File URL: http://www.wifo.ac.at/wwa/pubid/37742
File Function: Abstract
Download Restriction: no

Bibliographic Info

Paper provided by WIFO in its series WIFO Working Papers with number 352.

as in new window
Length: 21 pages
Date of creation: 10 Dec 2009
Date of revision:
Handle: RePEc:wfo:wpaper:y:2009:i:352

Contact details of provider:
Postal: Arsenal Object 20, A-1030 Wien
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC

Related research

Keywords: Finanztransaktionen; Spekulationstechniken; Dynamik von Vermögenspreisen; Transaktionssteuern;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Robert Pollin & Dean Baker & Marc Schaberg, 2003. "Securities Transaction Taxes for U.S. Financial Markets," Eastern Economic Journal, Eastern Economic Association, vol. 29(4), pages 527-558, Fall.
  2. Schulmeister, Stephan, 2009. "Profitability of technical stock trading: Has it moved from daily to intraday data?," Review of Financial Economics, Elsevier, vol. 18(4), pages 190-201, October.
  3. Harry Huizinga, 2002. "A European VAT on financial services?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 497-534, October.
  4. Stephan Schulmeister, 2010. "Asset Price Fluctuations, Financial Crises and the Stabilizing Effects of a General Transaction Tax," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
  5. Barry Eichengreen, James Tobin, and Charles Wyplosz., 1994. "Two Cases for Sand in the Wheels of International Finance," Center for International and Development Economics Research (CIDER) Working Papers C94-045, University of California at Berkeley.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2009:i:352. See general 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: (Ilse Schulz).

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.