LEADER 04877oam 22010814 450 001 9910788344203321 005 20230721045618.0 010 $a1-4623-4368-6 010 $a1-4527-1376-6 010 $a1-4518-7085-X 010 $a9786612841781 010 $a1-282-84178-5 035 $a(CKB)3170000000055130 035 $a(EBL)1608038 035 $a(SSID)ssj0000943287 035 $a(PQKBManifestationID)11584500 035 $a(PQKBTitleCode)TC0000943287 035 $a(PQKBWorkID)10978109 035 $a(PQKB)11231071 035 $a(OCoLC)762701230 035 $a(MiAaPQ)EBC1608038 035 $a(IMF)WPIEE2008227 035 $a(EXLCZ)993170000000055130 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aTax Reforms, ?Free Lunches?, and ?Cheap Lunches? in Open Economies /$fJuha Tervala, Giovanni Ganelli 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (32 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/08/227 300 $aDescription based upon print version of record. 311 $a1-4519-1538-1 320 $aIncludes bibliographical references. 327 $aContents; I. Introduction; II. The Model; A. Households; B. The Government; C. Firms; D. The Initial Steady State; III. Parameterization; IV. The Domestic and International Effects of a Cut in the Income Tax Rate; A. The Impact on the Domestic Economy; B. The International Effects; V. Consumption Tax Cuts; VI. A Revenue Neutral Tax Reform; VII. Sensitivity Analysis; VII. Conclusions; Appendix; References 330 3 $aThis paper focuses on the macroeconomic and budgetary impact of tax reforms in a New Keynesian two-country model. Our results show that both income and consumption unilateral tax rate reductions do not constitute a "free lunch", in the sense that they have negative budgetary consequences for the country which implements them. In addition, the degree of self-financing implied by our model is in the 8½-24 percent range. Since the degree of self-financing estimated in previous literature was larger, we conclude that in our model not only the "lunch" is not "free", but is also not that "cheap". A comparison of alternative (income-tax versus consumption-tax based) fiscal stimulus packages shows that consumption tax cuts imply a larger short-run impact on domestic output but the income tax cuts stimulate the domestic economy more in the long run. We also look at the implications of a revenue-neutral tax reform in which consumption taxes are increased to compensate for lower income tax collection. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/227 606 $aTaxation$xEconometric models 606 $aPublic welfare$xEconometric models 606 $aMacroeconomics$2imf 606 $aPublic Finance$2imf 606 $aTaxation$2imf 606 $aBusiness Taxes and Subsidies$2imf 606 $aPersonal Income and Other Nonbusiness Taxes and Subsidies$2imf 606 $aTaxation, Subsidies, and Revenue: General$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aPublic finance & taxation$2imf 606 $aConsumption taxes$2imf 606 $aIncome and capital gains taxes$2imf 606 $aRevenue administration$2imf 606 $aConsumption$2imf 606 $aTax collection$2imf 606 $aSpendings tax$2imf 606 $aIncome tax$2imf 606 $aRevenue$2imf 606 $aEconomics$2imf 606 $aTax administration and procedure$2imf 607 $aUnited States$2imf 615 0$aTaxation$xEconometric models. 615 0$aPublic welfare$xEconometric models. 615 7$aMacroeconomics 615 7$aPublic Finance 615 7$aTaxation 615 7$aBusiness Taxes and Subsidies 615 7$aPersonal Income and Other Nonbusiness Taxes and Subsidies 615 7$aTaxation, Subsidies, and Revenue: General 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aPublic finance & taxation 615 7$aConsumption taxes 615 7$aIncome and capital gains taxes 615 7$aRevenue administration 615 7$aConsumption 615 7$aTax collection 615 7$aSpendings tax 615 7$aIncome tax 615 7$aRevenue 615 7$aEconomics 615 7$aTax administration and procedure 676 $a336.2 700 $aTervala$b Juha$01493493 701 $aGanelli$b Giovanni$01092052 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788344203321 996 $aTax Reforms, ?Free Lunches?, and ?Cheap Lunches? in Open Economies$93716493 997 $aUNINA