![Page 1: THE IMPACT OF SECURITY TRANSACTION TAX ON A …mr. panupong sukkerd a thesis submitted in partial fulfillment of the requirements for the degree of master degree of arts (economics)](https://reader034.vdocument.in/reader034/viewer/2022051902/5ff238ef617fe94c911b1842/html5/thumbnails/1.jpg)
THE IMPACT OF SECURITY TRANSACTION TAX
ON A STRUCTURAL MODEL OF THAILAND’S
STOCK MARKET AND MACROECONOMY
BY
MR. PANUPONG SUKKERD
A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
MASTER DEGREE OF ARTS (ECONOMICS)
(ENGLISH LANGUAGE PROGRAM)
FACULTY OF ECONOMICS
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2013
COPYRIGHT OF THAMMASAT UNIVERSITY
![Page 2: THE IMPACT OF SECURITY TRANSACTION TAX ON A …mr. panupong sukkerd a thesis submitted in partial fulfillment of the requirements for the degree of master degree of arts (economics)](https://reader034.vdocument.in/reader034/viewer/2022051902/5ff238ef617fe94c911b1842/html5/thumbnails/2.jpg)
THE IMPACT OF SECURITY TRANSACTION TAX
ON A STRUCTURAL MODEL OF THAILAND’S
STOCK MARKET AND MACROECONOMY
BY
MR. PANUPONG SUKKERD
A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
MASTER DEGREE OF ARTS (ECONOMICS)
(ENGLISH LANGUAGE PROGRAM)
FACULTY OF ECONOMICS
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2013
COPYRIGHT OF THAMMASAT UNIVERSITY
![Page 3: THE IMPACT OF SECURITY TRANSACTION TAX ON A …mr. panupong sukkerd a thesis submitted in partial fulfillment of the requirements for the degree of master degree of arts (economics)](https://reader034.vdocument.in/reader034/viewer/2022051902/5ff238ef617fe94c911b1842/html5/thumbnails/3.jpg)
![Page 4: THE IMPACT OF SECURITY TRANSACTION TAX ON A …mr. panupong sukkerd a thesis submitted in partial fulfillment of the requirements for the degree of master degree of arts (economics)](https://reader034.vdocument.in/reader034/viewer/2022051902/5ff238ef617fe94c911b1842/html5/thumbnails/4.jpg)
(1)
ABSTRACT
This thesis constructs a closed-economy dynamic stochastic general
equilibrium (DSGE) model with heterogeneous traders to study the impact of security
transaction tax (STT) on stock market and macroeconomy. The model’s parameters
are set for the case of Thai economy. The study finds that STT has the impact on
stock market and macroeconomy when the noise-trader shocks take place. Adopting
STT can reduce the noise trade, share price as well as the volatility of fund return and
equity premium. This result goes in accordance with the pro argument as well as the
finding of Lendvai et al (2013). Moreover, this study also shows that an STT can
increase the households’ welfare while it decreases the welfare volatility. This result
supports the proponents’ arguments that an STT can improve the social welfare such
as Stiglitz (1989) and Darvas and Weizsäcker (2011).