The Taxation of Trades in Assets.

When the asset market is incomplete,there typically exist taxes on trades in assets and a redistribution of revenue in the asset market that are Pareto improving. The policy is anonymous,it economizes on complexity,and it re- sults in ex post Pareto optimal allocations ; it is publicly announced before markets open,thus fully and correctly anticipated by traders,it does not require that .nancial markets be shut down,and it does not modify the asset market structure.As such,it improves over previously proposed constrained interventions.