CONT–BOUCHAUD PERCOLATION MODEL INCLUDING TOBIN TAX

Gudrun Ehrenstein ()
Additional contact information
Gudrun Ehrenstein: Institute for Theoretical Physics, Cologne University, D-50923 Köln, Euroland

International Journal of Modern Physics C (IJMPC), 2002, vol. 13, issue 10, 1323-1331

Abstract: The Tobin tax is an often discussed method to tame speculation and get a source of income. The discussion is especially heated when the financial markets are in crisis. In this article we refer to the foreign exchange markets. The Tobin tax should be a small international tax affecting all currency transactions and thus consequently reducing destabilizing speculations. In this way this tax should take over a control function. By including the Tobin tax in the microscopic model of Cont and Bouchaud one finds that this tax could be the right method to control foreign exchange operations and to get a good source of income.

Keywords: Currency speculation; turnover; profit (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0129183102003917
Access to full text is restricted to subscribers

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:wsi:ijmpcx:v:13:y:2002:i:10:n:s0129183102003917

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0129183102003917

Access Statistics for this article

International Journal of Modern Physics C (IJMPC) is currently edited by H. J. Herrmann

More articles in International Journal of Modern Physics C (IJMPC) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().