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

37 Pages Posted: 20 Apr 2016  

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)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Sean K. Yoder

University of Maine ( email )

Orono, ME 04469
United States

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