scholarly journals On the non-homogeneous effect of financial transaction taxes

2020 ◽  
Vol 9 (3) ◽  
pp. 230-239
Author(s):  
Patrick Thöni
Keyword(s):  
Financial Market ◽  
Benchmark Model ◽  
Benchmark Analysis ◽  
Financial Transaction ◽  
Market Depth ◽  
Bid Ask Spread ◽  
Non Linear ◽  
Transaction Taxes ◽  
Transaction Tax ◽  
The Impact

This paper investigates the impact of a financial transaction tax (FTT) in a classic financial market setting. The benchmark analysis is based on an extension of the model presented in Kyle (1985). Opposed to the existing literature, I am able to find equilibrium values with a linear tax. Results of the benchmark model confirm standard findings of FTTs, such as an increased bid–ask spread and an overall less deep market. Importantly, I find that the introduction of a tax leads to a non–linear pricing function. In turn, the model predicts a decrease in market depth and trading aggressiveness for small trades, whereas for larger trades the introduction of an FTT only leads to increased prices and spreads.

The impact of the French financial transaction tax on HFT activities and market quality

2017 ◽  
Vol 67 ◽  
pp. 307-315 ◽  
Author(s):  
Iryna Veryzhenko ◽  
Etienne Harb ◽  
Waël Louhichi ◽  
Nathalie Oriol
Keyword(s):  
Market Quality ◽  
Financial Transaction ◽  
Financial Transaction Tax ◽  
Transaction Tax ◽  
The Impact

scholarly journals Using an artificial financial market for assessing the impact of Tobin-like transaction taxes

2008 ◽  
Vol 67 (2) ◽  
pp. 445-462 ◽  
Author(s):  
Katiuscia Mannaro ◽  
Michele Marchesi ◽  
Alessio Setzu
Keyword(s):  
Financial Market ◽  
Transaction Taxes ◽  
The Impact

scholarly journals The financial transaction tax: an ANOVA assessment of selected EU countries

Equilibrium ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 29-48
Author(s):  
Manuela Raisová ◽  
Martina Regásková ◽  
Kornélia Lazányi
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Gdp Growth ◽  
Financial Transaction ◽  
Eu Countries ◽  
The United Kingdom ◽  
Financial Transaction Tax ◽  
Transaction Taxes ◽  
Transaction Tax ◽  
The Eu

Research background: There are various forms of fiscal taxation of the financial assets. In recent times, the discussion about financial transaction tax in the EU is associated with finding the solution to problems due to great financial crisis. The European Commission has made some efforts to strengthen capital regulation and it has adopted the Directive about implementing enhanced cooperation in the field of financial transaction tax, where it analyzed options and impacts of FTT according to those countries which have already implemented similar transaction taxes in their national legislatives. Purpose of the article: Our aim is to find out the economic relationship between FTT and economic growth and to analyze the effect of FTT within selected EU countries. Methods: In this paper, we will analyze the banking environment in the EU area, and we emphasize the correlation between tax policy and economic growth. We will test FTT through three-way mixed-effects ANOVA, and analyze three Member states, Belgium, Ireland and the United Kingdom, which have very active attitude to implementation of FTT within other EU countries. Findings & Value added: We are interested in: (1) testing the relationship between the financial transaction tax (FTT) and economic growth (GDP); and (2) to verify the hypothesis that FTT could improve GDP growth in a country. We assume that if a country has adopted FTT in its tax system, then it will lead to a significant GDP growth, and so it could lead to financial market improvement after the crisis. Our results have shown that an increase in FTT volume would lead only to a negligible increase in the economic growth.

Assessment of the Development Level of the Russian Financial Market at the Stages of Economic Growth

2021 ◽  
Vol 13 (1-2) ◽  
pp. 235-264
Author(s):  
Alexander Novikov ◽  
◽  
Irina Novikova ◽  
Keyword(s):  
Economic Growth ◽  
Financial Market ◽  
Financial Institutions ◽  
Expert Assessment ◽  
Demand Model ◽  
Financial Instrument ◽  
Market Depth ◽  
Development Level ◽  
Macroeconomic Indicators ◽  
The Impact

The article examines the development of the Russian economy in its modern capitalist period. The authors emphasize that when analyzing the dynamics of GDP, there are five stages that have significant differences: growth rates, models that stimulate growth, sources of financing for economic growth, and other reasons, the totality of which determines the ‘face’ of each of the selected stages. The authors substantiate the necessity and possibility of using the potential of the financial market to stimulate economic growth. At the same time, considerable attention is paid to the justification of the impact of indicators that characterize the financial market within the framework of the institutional (financial institutions) and instrumental (financial instrument markets) approaches. The authors highlight five stages of Russia’s economic growth: economic (transformational) decline (1991–1998), rapid recovery economic growth (1999–2007), decaying recovery economic growth (2008–2012), stagnant economic growth (2013–2019). The article shows the importance of the financial market for the implementation of the main tasks at each stage from the standpoint of expert assessment of indicators of the development level of the financial market: depth (the importance of institutions and financial market instruments relative to macroeconomic indicators), availability of services provided by institutions and financial instrument markets, stability (the ability of financial institutions to continue providing services in the event of force majeure and financial market volatility), efficiency (the attractiveness of the market for business). The authors of the article believe that in 2020, a new fifth stage of Russia’s economic growth began, the potential of which can be revealed through the use of financial boost tools. At present, Russia is in a unique situation of a combination of a crisis based on both a demand model and a supply model. The authors propose specific measures to use the potential of these models. The combination of the measures used will reveal new opportunities for the development of the economy and society. These opportunities can be obtained by using the ideology of the strategy of accelerated financial development of the economy – financial boost.

Welfare Effects of Housing Transaction Taxes: A Quantitative Analysis with an Assignment Model

2021 ◽  
Author(s):  
Niku Määttänen ◽  
Marko Terviö
Keyword(s):  
Evaluation Studies ◽  
Welfare Effects ◽  
Metropolitan Region ◽  
Reduced Form ◽  
Tax Rate ◽  
Model Based ◽  
Assignment Model ◽  
Transaction Taxes ◽  
Transaction Tax ◽  
The Impact

Abstract We evaluate the welfare cost of housing transaction taxes with a new assignment model based framework, where welfare effects are driven by distortions in the matching of houses and households. We calibrate the model with data from the Helsinki metropolitan region to assess the impact of a reform where an ad valorem transaction tax is replaced with a revenue equivalent property tax. The aggregate welfare gain from this reform increases rapidly with the initial transaction tax rate, with the Laffer curve peaking at about 10%. The proportion of households that lose out from the reform is nevertheless increasing in the tax rate. We compare our model-based counterfactual aggregate welfare results with welfare calculations based on reduced-form estimates from previous policy evaluation studies; they are broadly in line, despite the latter using data from different housing markets at various levels and changes of the tax rate.

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