Financial Transactions Tax: Panacea, Threat or Damp Squib?

34 Pages Posted: 14 Nov 2009 Last revised: 15 Oct 2010

See all articles by Patrick Honohan

Patrick Honohan

Trinity College Dublin - Department of Economics; Peter G. Peterson Institute for International Economics; Centre for Economic Policy Research (CEPR)

Seán K. Yoder

University of Dublin - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 14, 2009

Abstract

Attempts to raise a significant percentage of GDP in revenue from a broad-based financial transactions tax are likely to fail both by raising much less revenue than expected and by generating far-reaching changes in economic behaviour. Although the side-effects would include a sizable restructuring of financial sector activity, this would not occur in ways corrective of the particular forms of financial overtrading that were most conspicuous in contributing to the crisis.

Keywords: Transaction Tax, Tobin Tax

JEL Classification: H27, H25, O29

Suggested Citation

Honohan, Patrick and Yoder, Seán K., Financial Transactions Tax: Panacea, Threat or Damp Squib? (August 14, 2009). Available at SSRN: https://ssrn.com/abstract=1505954 or http://dx.doi.org/10.2139/ssrn.1505954

Patrick Honohan

Trinity College Dublin - Department of Economics ( email )

Dublin 2
Ireland

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Centre for Economic Policy Research (CEPR)

33 Great Sutton St,
Clerkenwell,
London, EC1V 0DX
United Kingdom

Seán K. Yoder (Contact Author)

University of Dublin - Department of Economics ( email )

Dublin 2
Ireland

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