Financial Transactions Tax: Panacea, Threat or Damp Squib?

Honohan, Patrick; Yoder, Seán K.

doi:10.2139/ssrn.1505954

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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

There 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: Suggested Citation

Honohan, Patrick and 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