Can you help shape our future priorities? Take a five minute survey now. Survey closes on 8 July.

Publication

The Tobin Tax – A Review of the Evidence

Published on 8 February 2011

The debate about the Tobin Tax, and other financial transaction taxes (FTT), gives rise to strong views both for and against. Unfortunately, little of this debate is based on the now considerable body of evidence about the impact of such taxes. This review attempts to synthesise what we know from the available theoretical and empirical literature about the impact of FTTs on volatility in financial markets. We also review the literature on how a Tobin Tax might be implemented, the amount of revenue that it might realistically produce, and the likely incidence of the tax. We conclude that, contrary to what is often assumed, a Tobin Tax is feasible and, if appropriately designed, could make a significant contribution to revenue without causing major distortions. However, it would be unlikely to reduce market volatility and could even increase it.

Authors

Neil McCulloch

Honorary Associate

Publication details

published by
Department of Economics
authors
McCulloch, N. and Pacillo, G.

Share

Related content

Working Paper

Fragmented Power, Access and Legitimacy: The Politics of Social Assistance in Yemen’s Conflict (2014–24)

BASIC Research Working Paper 38

30 June 2025

Opinion

The power of communities during civic space closure in Central America

Rocío Elizabeth Ramírez Argueta, Oficial de programas y proyectos, COMCAVIS TRANS

& 3 others

24 June 2025

Opinion

El poder de las comunidades frente al cierre del espacio cívico en Centroamérica

Rocío Elizabeth Ramírez Argueta, Oficial de programas y proyectos, COMCAVIS TRANS

& 3 others

24 June 2025

Opinion

Shaping the future of AI: The role of non-binding agreements

23 June 2025

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.