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The Fiscal Approach to Financial Intermediation Policy

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  • Patrick Honohan

    (Economic and Social Research Institute (ESRI))

Abstract

Against the background of increasing financial depth and international financial integration, not least in the EU, the trend towards analyzing financial system policy in fiscal terms is reviewed. Implicit and explicit taxation of the financial system has generated substantial ? though now declining ? fiscal resources. In many countries arbitrary fluctuations in such taxation have accidentally from poorly designed regulatory mechanisms whose primary purpose was not revenue, and which had been set up without regard to the quasi-fiscal consequences. Insights from standard tax analysis help assess the question of efficiency of financial system taxation, though they should not be applied without taking into account the informational and risk-sharing characteristics of financial contracts. The institutional structure of the financial sector can be strongly influenced by conventional taxation.

Suggested Citation

  • Patrick Honohan, 1994. "The Fiscal Approach to Financial Intermediation Policy," Papers WP049, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp049
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    File URL: http://www.esri.ie/pubs/WP049.pdf
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    Cited by:

    1. Baker, Terence J. & FitzGerald, John & Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Introduction," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 1, pages 1-9 Economic and Social Research Institute (ESRI).
    2. FitzGerald, John & Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Overall Macroeconomic Assessment," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 6, pages 143-169 Economic and Social Research Institute (ESRI).
    3. Baker, Terence J. & FitzGerald, John & Honohan, Patrick, 1996. "Economic Implications for Ireland of EMU," Research Series, Economic and Social Research Institute (ESRI), number PRS28.
    4. Morgenroth, Edgar & FitzGerald, John & FitzGerald, John, 2006. "Summary and Conclusions," Book Chapters,in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 24, pages 317-333 Economic and Social Research Institute (ESRI).
      • Baker, Terence J. & FitzGerald, John & Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Summary and Conclusions," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 12, pages 339-352 Economic and Social Research Institute (ESRI).
    5. Duggan, Delma & FitzGerald, John & Johnston, Justin & Kavanagh, Ella & FitzGerald, John & Honohan, Patrick, 1996. "Macroeconomic Response to Shocks," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 5, pages 105-142 Economic and Social Research Institute (ESRI).
    6. Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Adapting to Regime Change," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, pages 10-36 Economic and Social Research Institute (ESRI).
    7. Kelly, Jane & FitzGerald, John & Honohan, Patrick, 1996. "The Tourism Sector," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 11, pages 321-338 Economic and Social Research Institute (ESRI).
    8. Duggan, Delma & FitzGerald, John & Johnston, Justin & Kelly, Jane & FitzGerald, John & Honohan, Patrick, 1996. "The Macroeconomy in Stable Conditions," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, pages 50-86 Economic and Social Research Institute (ESRI).
    9. Baker, Terence J. & Duffy, David & Duggan, Delma & FitzGerald, John & Honohan, Patrick, 1996. "The Manufacturing Sector," Book Chapters,in: Baker, Terence J. (ed.), Economic Implications for Ireland of EMU, chapter 7, pages 174-221 Economic and Social Research Institute (ESRI).

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