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. …

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 …

markets and to reduce destabilizing capital flows. One variation is a tax on all foreign currency conversions, often termed a … “Tobin tax.” This paper suggests that these taxes would probably not produce the desired effects and would be difficult to …, without a broad international consensus and application, these taxes are likely to be easily avoided …