Tax incidence for fragile financial markets

• 成果类型: Article
• 署名作者: Bierbrauer, Felix
• 署名单位: University of Cologne
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2014.09.002
• 发表日期: 2014
• 页码: 107-125
• 关键词: tax incidence; financial markets; Financial transactions tax

摘要

Standard tax incidence analysis deals with households and firms that buy and sell consumption goods, as opposed to financial institutions that buy and sell financial products. This paper develops a framework that allows us to study tax incidence on financial markets, and applies it to a financial transactions tax. A main result is that the tax may contribute to financial distress. Moreover, if the government has to bail out the debtors of failed financial institutions, the tax-induced increase in bailout costs may be larger than the increase in tax revenue, so that the government's overall fiscal position becomes worse. (C) 2014 Elsevier B.V. All rights reserved.