The taxation of trades in assets

Alessandro Citanna, H. M. Polemarchakis, M. Tirelli

Research output: Contribution to journalArticle

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 1 2006

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Pareto
Fiscal policy
Traders
Pareto optimal allocations
Asset markets
Taxation
Tax
Assets

Keywords

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

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

The taxation of trades in assets. / Citanna, Alessandro; Polemarchakis, H. M.; Tirelli, M.

In: Journal of Economic Theory, Vol. 126, No. 1, 01.01.2006, p. 299-313.

Research output: Contribution to journalArticle

Citanna, A, Polemarchakis, HM & Tirelli, M 2006, 'The taxation of trades in assets', Journal of Economic Theory, vol. 126, no. 1, pp. 299-313. https://doi.org/10.1016/j.jet.2004.11.003
Citanna, Alessandro ; Polemarchakis, H. M. ; Tirelli, M. / The taxation of trades in assets. In: Journal of Economic Theory. 2006 ; Vol. 126, No. 1. pp. 299-313.
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