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We present a stock market model that quantitatively replicates the joint behavior of stock prices, trading volume and investor expectations. Stock prices in the model occasionally display belief-driven boom and bust cycles that delink asset prices from fundamentals and redistribute considerable...
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We investigate the positive and normative implications of a tax on financial market transactions in a dynamic general ….S. data and find an optimal tax rate of 2.5 percent. Imposing this tax reduces trading in financial markets by 30 percent. …
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This paper attempts to address both theoretical and practical considerations for a tax such as financial transactions … financial markets is incomplete and imprecise, remains. However, globally, FTT remains a commonly used tax. A cross …
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We develop a new methodology to estimate the impact of a financial transaction tax (FTT) on informational efficiency … information of heterogeneous quality. We estimate the model without a tax and then quantify the effect of an FTT. In our sample …
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