Heterogeneous traders and the Tobin tax

Autor(en): Westerhoff, F
Stichwörter: Business & Economics; Economics; foreign exchange markets; REAL; technical and fundamental analysis; Tobin tax
Erscheinungsdatum: 2003
Herausgeber: SPRINGER
Journal: JOURNAL OF EVOLUTIONARY ECONOMICS
Volumen: 13
Ausgabe: 1
Startseite: 53
Seitenende: 70
Zusammenfassung: 
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.
ISSN: 09369937
DOI: 10.1007/s00191-003-0140-5

Show full item record

Page view(s)

1
Last Week
0
Last month
0
checked on Mar 4, 2024

Google ScholarTM

Check

Altmetric