Chou, Robin K.; Wang, George H. K. - In: Journal of Futures Markets 26 (2006) 12, pp. 1195-1216
On May 1, 2000, the Taiwan government reduced the tax levied on futures transactions on the Taiwan Futures Exchange from 5 to 2.5 basis points. This event provides a unique opportunity to test empirically the impact of a tax rate reduction on trading volume, bid‐ask spreads, and price...