When the asset market is incomplete, there typically exist taxes on trades in assets that are Pareto improving. This fiscal policy is anonymous, it is fully and correctly anticipated by traders, and it results in ex post Pareto optimal allocations; as such, it improves over previously proposed constrained interventions.
Citanna, A., Polemarchakis, H., Tirelli, M. (2006). The taxation of trade in assets. JOURNAL OF ECONOMIC THEORY, 126, 299-313 [10.1016/j.jet.2004.11.003].
The taxation of trade in assets
TIRELLI, Mario
2006-01-01
Abstract
When the asset market is incomplete, there typically exist taxes on trades in assets that are Pareto improving. This fiscal policy is anonymous, it is fully and correctly anticipated by traders, and it results in ex post Pareto optimal allocations; as such, it improves over previously proposed constrained interventions.File in questo prodotto:
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