@article{Thöni_2020, title={On the non-homogeneous effect of financial transaction taxes}, volume={9}, url={https://reunido.uniovi.es/index.php/EBL/article/view/14756}, DOI={10.17811/ebl.9.3.2020.230-239}, abstractNote={<p>This paper investigates the impact of a financial transaction tax (FTT) in a classic financial market setting. The benchmark analysis is based on an extension of the model presented in Kyle (1985). Opposed to the existing literature, I am able to find equilibrium values with a linear tax. Results of the benchmark model confirm standard findings of <span style="text-decoration: underline;">FTTs</span>, such as an increased bid–ask spread and an overall less deep market. Importantly, I find that the introduction of a tax leads to a non–linear pricing function. In turn, the model predicts a decrease in market depth and trading aggressiveness for small trades, whereas for larger trades the introduction of an <span style="text-decoration: underline;">FTT</span> only leads to increased prices and spreads.</p>}, number={3}, journal={Economics and Business Letters}, author={Thöni, Patrick}, year={2020}, month={Dec.}, pages={230–239} }