Securities Transaction Taxes: Macroeconomic Implications in a General-Equilibrium Model
Rafal Raciborski,
Julia Lendvai and
Lukas Vogel
No 450, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission
Abstract:
The paper studies the impact of a securities transaction tax (STT) on financial trading, stock prices and real economic variables in a closed-economy dynamic stochastic general-equilibrium model featuring financial frictions. The model incorporates channels by which 'noise trading' affects real economic volatility. Firms' investment expenditure is related to the value of their outstanding shares. The model is calibrated to stylised facts of financial trading and firms' financing. The simulations suggest distortive effects of the STT on real variables similar to those of corporate income taxation. At the same time, the STT reduces economic volatility, but this stabilisation gain is quantitatively modest.
JEL-codes: E22 E44 E62 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2012-03
New Economics Papers: this item is included in nep-cmp, nep-dge and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
https://ec.europa.eu/economy_finance/publications/ ... r/2012/ecp450_en.htm (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0450
Access Statistics for this paper
More papers in European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission Contact information at EDIRC.
Bibliographic data for series maintained by ECFIN INFO ().