Taxation of Transactions in Imperfect Financial Markets
With this Sapere Aude Advanced Grant project Peter Norman Sørensen combines models and insights from two fields of Economics to study the rationale for a small tax on transactions in financial markets.
The field of Financial Market Microstructure provides models of financial markets, incorporating realistic imperfections in the functionality of these markets. The field of welfare economics provides the important principle that taxes on transactions have a potential to improve upon the outcomes of imperfect markets.
A financial transactions tax is a known policy instrument, but this project will give a stronger identification of its role in the economic analysis of financial markets. The project’s ultimate ambition is to completely characterize the types of financial market imperfections which can be fruitfully addressed by the tax. This ambition entails the need to develop new models at the intersection of the two research fields.
Researchers
| Name | Title | Job responsibilities | |
|---|---|---|---|
| Peter Norman Sørensen | Professor | Asymmetric Information in Finance and Economics; Herding Behavior; Prediction Markets; Microstructure of Financial Markets |
|
Funded by:
Taxation of Transactions in Imperfect Financial Markets has received a five year funding from Independent Research Foundation Denmark
Period: December 2015 - December 2020
Contact
Principal investigator Peter Norman Sørensen
External members:
| Name | Title | Phone | |
|---|---|---|---|
| Test Testesen | PhD fellow | +45 353-20566 | |
| Forsker Forskersen | Associate professor | +45 353-30148 |