Heterogeneous traders and the Tobin tax
Journal of Evolutionary Economics (2003)
- ISSN: 09369937
- DOI: 10.1007/s00191-003-0140-5
Available from www.springerlink.com
or
Abstract
To study the effectiveness of the Tobin tax, we develop a model of heterogeneous interacting agents. Traders either speculate on the basis of technical or fundamental analysis, or abstain from the market, a decision which depends on profit considerations, as well as communication between agents. Simulations generate stylized facts such as unit roots in exchange rates, fat tails for returns, or volatility clustering. The imposition of a Tobin tax leads to a crowding out of speculators and stabilizes the dynamics. However, the decreasing impact of fundamentalists triggers misalignments if tax rates are too high.
Author-supplied keywords
Sign up today - FREE
Mendeley saves you time finding and organizing research. Learn more
- All your research in one place
- Add and import papers easily
- Access it anywhere, anytime
Start using Mendeley in seconds!
Readership Statistics
3 Readers on Mendeley
by Discipline
67% Economics
by Academic Status
67% Ph.D. Student
33% Student (Master)
by Country
33% Netherlands
33% Belgium
33% United States