Global financial turmoil in recent years has resulted in renewed interest in Stock Transaction Taxes (STT). Given that the existing literature on the <italic>quantitative</italic> impact of STT on turnover is limited and/or outdated, this article reinvestigates the issue, taking up the Japanese market reforms...

Japan eliminated turnover tax on stock trading through the end of the 1990's to revitalize its ailing stock market by reducing the overall transaction cost for stock trading. This paper empirically examines the effect of this exogenous, institutional change in tax policy on stock trading volume...