Arbeitspapier
The economic consequences of a Tobin tax: An experimental analysis
The effects of a Tobin tax on foreign exchange markets have long been disputed. We present an experiment with currency trading on two markets, where either none, one, or both markets are taxed. Our results confirm the hitherto undisputed issues: a tax reduces trading volume, shifts market share to untaxed markets, and leads to negligible tax revenues if tax havens exist. Concerning the controversial issues we find that (i) volatility effects depend on the existence of tax havens and on market size, (ii) market efficiency remains unaffected by the tax, (iii) short-term speculation is reduced, and (iv) the tax has persistent effects even after its abolishment.
- Language
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Englisch
- Bibliographic citation
-
Series: Working Papers in Economics and Statistics ; No. 2007-18
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Fiscal Policy
- Subject
-
Tobin tax
experiment
foreign exchange
market efficiency
trading volume
volatility
Tobinsteuer
Markteffizienz
Börsenumsatz
Volatilität
Devisenmarkt
Schätzung
Test
- Event
-
Geistige Schöpfung
- (who)
-
Hanke, Michael
Huber, Jürgen
Kirchler, Michael
Sutter, Matthias
- Event
-
Veröffentlichung
- (who)
-
University of Innsbruck, Department of Public Finance
- (where)
-
Innsbruck
- (when)
-
2007
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Hanke, Michael
- Huber, Jürgen
- Kirchler, Michael
- Sutter, Matthias
- University of Innsbruck, Department of Public Finance
Time of origin
- 2007