Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71471
Authors: 
Bond, Steve
Hawkins, Mike
Klemm, Alexander
Year of Publication: 
2004
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 04/11
Abstract: 
This paper provides a discussion of stamp duty and its effects. This is followed by an empirical study using changes in the rate of stamp duty in the UK as natural experiments. Because shares will be affected differently depending on how frequently they are traded, we can employ a difference-in-differences methodology. We find that the announcements of cuts in stamp duty had a significant and positive effect on the price of more frequently traded shares compared to other shares. As expected under the efficient markets hypothesis, the implementation of cuts (when at a different date from the announcement) did not affect returns differentially.
Subjects: 
Stamp duty
transaction tax
Tobin-tax
natural experiment
tax reform
JEL: 
G14
H29
E62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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