Speculative Investors and Tobin's Tax in the Housing Market / Yuming Fu, Wenlan Qian, Bernard Yeung.

Format:

Book

Author/Creator:

Fu, Yuming.

Contributor:

National Bureau of Economic Research.

Qian, Wenlan.

Yeung, Bernard.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19400.

NBER working paper series no. w19400

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2013.

Summary:

This paper examines the impact of a policy change in Tobin's tax on housing market speculators. The policy intervention effectively raised the transaction cost in the market segment with a high presence of speculators. Relative to the unaffected control sample, we find that the rise in transaction cost substantially reduced speculative trading activities in the treatment sample. However, it significantly raised its price volatility and reduced the price informativeness. We further show that the unintended consequences are likely due to a relatively greater withdrawal by informed speculators than by destabilizing speculators after the transaction cost increase.

Notes:

Print version record

September 2013.