Tax Reforms, “Free Lunches”, and “Cheap Lunches” in Open Economies / / Juha Tervala, Giovanni Ganelli

• Autore: Tervala Juha
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2008
• Edizione: 1st ed.
• Descrizione fisica: 1 online resource (32 p.)
• Disciplina: 336.2
• Soggetto topico: Taxation - Econometric models; Public welfare - Econometric models; Macroeconomics; Public Finance; Taxation; Business Taxes and Subsidies; Personal Income and Other Nonbusiness Taxes and Subsidies; Taxation, Subsidies, and Revenue: General; Macroeconomics: Consumption; Saving; Wealth; Public finance & taxation; Consumption taxes; Income and capital gains taxes; Revenue administration; Consumption; Tax collection; Spendings tax; Income tax; Revenue; Economics; Tax administration and procedure
• Soggetto geografico: United States
• Altri autori: GanelliGiovanni
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Contents; 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
• Sommario/riassunto: This 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.
• Titolo autorizzato: Tax Reforms, “Free Lunches”, and “Cheap Lunches” in Open Economies
• ISBN: 1-4623-4368-6; 1-4527-1376-6; 1-4518-7085-X; 9786612841781; 1-282-84178-5
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910810966703321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2008/227