TY  - UNPD
A1  - Buss, Adrian
A1  - Dumas, Bernard
A1  - Uppal, Raman
A1  - Vilkov, Grigory
T1  - The intended and unintended consequences of financial-market regulations: a general equilibrium analysis
T2  - SAFE working paper series ; No. 124
N2  - In a production economy with trade in financial markets motivated by the desire to share labor-income risk and to speculate, we show that speculation increases volatility of asset returns and investment growth, increases the equity risk premium, and reduces welfare. Regulatory measures, such as constraints on stock positions, borrowing constraints, and the Tobin tax have similar effects on financial and macroeconomic variables. Borrowing limits and a financial transaction tax improve welfare because they substantially reduce speculative trading without impairing excessively risk-sharing trades.
T3  - SAFE working paper - 124 
KW  - Tobin tax
KW  - borrowing constraints
KW  - short-sale constraints
KW  - stock market volatility
KW  - incomplete markets
KW  - differences of opinion
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/39301
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-393016
UR  - http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2721730
UR  - http://safe-frankfurt.de/fileadmin/user_upload/editor_common/Research/Working_Paper/SAFE_WP_124.pdf
IS  - January 25, 2016
PB  - SAFE
CY  - Frankfurt am Main
ER  -