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Title:Might a Securities Transactions Tax Mitigate Excess Volatility? Some Evidence From the Literature PDF Logo
Authors:Haberer, Markus
Issue Date:2004
Series/Report no.:Discussion paper series / Universität Konstanz, Center of Finance and Econometrics (CoFE) 04/06
Abstract:International financial markets are said to be excessively volatile due to destabilizing speculation and excessive market volume. Transactions taxes might help. From studying the literature we conclude that there must be an optimal market liquidity, which minimizes excess volatility. There are two effects when imposing a transactions tax. Both reduce excess volatility in highly speculative markets when tax rates are small. The total tax effect then is unambiguous. However, in illiquid markets the tax might raise volatility.
Subjects:International Financial Markets
Securities Transactions Tax
Excess Volatility
JEL:H20
G15
G18
Persistent Identifier of the first edition:urn:nbn:de:bsz:352-opus-17579
Document Type:Working Paper
Appears in Collections:CoFE-Diskussionspapiere, Universität Konstanz

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