The growth of financial markets provokes regular debate, particularly in Europe, and in the aftermath of the global crisis a number of reforms have been proposed. In particular, two regulatory measures have been put forward: order-to-trade ratios and transaction taxes. This paper aims to...

In this paper, we revisit the question of the banks' ability to shift corporate income taxes to customers by increasing their net interest margins. We estimate tax incidence for 1,411 European commercial banks over the period 1992-2008. Unlike earlier studies which suffer from endogeneity...