Hello Penners,
I have just reviewed a book called "Modernizing US Securities
Regulations," a collection of essays and articles edited by Ken
Lehn of the U. of Pittsburgh (published by Irwin).
In an article by Yakov Amihud (NYU) and Haim Mendelson (Stanford),
the effect of a 0.5% stock transfer tax is estimated as a 1.3%
increase in the required return and a 13.8% decrease in the prices
of stocks on the NYSE. They did not take into account the secondary
effects of loss of liquidity, etc.
Regards.
John Keefe [EMAIL PROTECTED] 212-475-5580
