This paper attempts to address both theoretical and practical considerations for a tax such as financial transactions taxes (FTT). It includes examples of FTT in the wider context, for example, on stocks and derivatives, currency transactions, and tangible property. Most of the discussion...

Freier internationaler Kapitalverkehr kann eine Reihe von positiven Effekten auf die wirtschaftliche Entwicklung haben. Kapital wird in die produktivsten Investitionsprojekte gelenkt, Investitionsrisiken werden gestreut, neue Technologien verbreitet, und effiziente Finanzsysteme können sich...

Tobin has suggested that exchange rate volatility be controlled through a tax on international financial transactions. This analysis shows that the Tobin tax as a pure transaction tax is not viable. The tax would impair financial operations and create international liquidity problems. It is also...

In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. Frequently, foreign direct investment is financed in the host country without an international capital movement. We develop a model in which the optimal choice of...