Financial Transactions Tax: Panacea, Threat, or Damp Squib?

37 Pages Posted: 20 Apr 2016

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)

Sean K. Yoder

University of Maine

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 2010

Abstract

Attempts to raise a significant percentage of gross domestic product 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 behavior. 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: Debt Markets, Emerging Markets, Taxation & Subsidies, Banks & Banking Reform, Economic Theory & Research

Suggested Citation

Honohan, Patrick and Yoder, Sean K., Financial Transactions Tax: Panacea, Threat, or Damp Squib? (March 1, 2010). World Bank Policy Research Working Paper No. 5230. Available at SSRN: https://ssrn.com/abstract=1565991

Patrick Honohan (Contact Author)

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

Sean K. Yoder

University of Maine ( email )

Orono, ME 04469
United States

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