FINANCIAL TRANSACTION TAXATION IN AGENT-BASED SIMULATION

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dc.contributor.author Šperka, Roman
dc.contributor.author Szarowská, Irena
dc.contributor.other Ekonomická fakulta cs
dc.date.accessioned 2022-07-29T07:54:25Z
dc.date.available 2022-07-29T07:54:25Z
dc.identifier.issn 12123609
dc.identifier.uri https://dspace.tul.cz/handle/15240/165979
dc.description.abstract The aim of this paper is to investigate the impact of fi nancial transaction taxes (FTTs) on the stability of fi nancial markets. This paper presents an agent-based fi nancial market model and simulations in which agents follow technical and fundamental trading rules to determine their speculative investment positions. The model developed by Westerhoff (2009) was chosen for implementation and was extended by FTT and arising transaction costs. Because FTTs may be defi ned in various ways, this paper defi nes assets as tax objects. The model includes direct interactions between speculators, which may lead them to decide to change their trading behavior and addresses a technical and a fundamental strategy of market participants. The results suggest that the modifi ed model has a tendency to stabilize itself in the long term if fundamental trading rules outweigh the technical trading method. This model could be used when bubbles and crashes occur in fi nancial markets. Asset prices would be stabilized because their value targets near the fundamental value and volatility would also be minimized. Setting FTTs at a low rate for market stabilization is important. If FTTs and consequent transaction costs are too high, then the fi nancial system will destabilize and prices will grow without limit. The model described in this paper explores dependence market stability to the extent of FTTs. However, the model should not be interpreted as a model only for the introduction of FTT, but as a general model of transaction costs’ infl uence on the fi nancial market. en
dc.format text
dc.format.extent 12 stran cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
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dc.rights CC BY-NC
dc.subject financial transaction tax en
dc.subject agent-based model en
dc.subject technical and fundamental analysis en
dc.subject simulation en
dc.subject.classification F38
dc.subject.classification G18
dc.subject.classification C63
dc.subject.classification C88
dc.title FINANCIAL TRANSACTION TAXATION IN AGENT-BASED SIMULATION en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2016-2-012
dc.identifier.eissn 2336-5604
local.relation.volume 19
local.relation.issue 2
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 176
local.citation.epage 187
local.access open
local.fulltext yes


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