The taxation of trades in assets

Alessandro Citanna, Herakles M. Polemarchakis and Mario Tirelli ()

No 2001017, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: When the asset market is incomplete, there typically exist taxes on trades in assets and a redistribution of revenue in the asset market that are Pareto improving. The policy is anonymous, it economizes on complexity, and it results in ex post Pareto optimal allocations; it is publicly announced before markets open, thus fully and correctly anticipated by traders, it does not require that financial markets be shut down, and it does not modify the asset market structure. As such, it improves over previously proposed constrained interventions.

Keywords: taxes; incomplete asset market; equilibrium; Pareto improvement (search for similar items in EconPapers)
JEL-codes: D52 D60 H20 (search for similar items in EconPapers)
Date: 2001-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Journal Article: The taxation of trades in assets (2006)
Working Paper: The taxation of trades in assets (2006)
Working Paper: The Taxation of Trades in assets (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2001017

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