The taxation of trades in assets

A. Citanna, H. M. Polemarchakis, M. Tirelli

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)299-313
Number of pages15
JournalJournal of Economic Theory
Volume126
Issue number1
DOIs
StatePublished - Jan 2006

Keywords

  • Competitive equilibrium
  • Incomplete asset markets
  • Pareto improvement
  • Taxes

ASJC Scopus subject areas

  • Economics and Econometrics

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