Long Run Growth And Welfare Effects Of Tax Reform PDF Download
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Author | : Wen-Ya Chang |
Publisher | : |
Total Pages | : 0 |
Release | : 2012 |
Genre | : |
ISBN | : |
Download Long-Run Growth and Welfare Effects of Tax Reform Book in PDF, ePub and Kindle
This paper introduces an endogenously-determined fertility rate into a Romer-type endogenous growth model and, accordingly, investigates the effects on fertility, economic growth and social welfare of a revenue-neutral tax reform that involves switching from an income tax to a consumption tax. We show that, in a departure from the existing literature, tax reform could be harmful, rather than favourable, to both growth and welfare, due to an endogenous fertility rate. We also conduct a simple numerical analysis to investigate under what conditions the negative effect on growth and welfare occurs.
Author | : Mr.Gian Milesi-Ferretti |
Publisher | : International Monetary Fund |
Total Pages | : 38 |
Release | : 1995-07-01 |
Genre | : Business & Economics |
ISBN | : 1451848234 |
Download Growth Effects of Income and Consumption Taxes Book in PDF, ePub and Kindle
The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital. The different channels through which these taxes affect economic growth are discussed, and it is shown that in general the taxation of factor incomes (human and physical capital) is growth-reducing. The effects of consumption taxation on growth depend crucially on the elasticity of labor supply, and therefore on the specification of the leisure activity. The paper also derives some implications for the optimal intertemporal choice of tax instruments.
Author | : Manoj Atolia |
Publisher | : |
Total Pages | : 41 |
Release | : 2011 |
Genre | : |
ISBN | : |
Download Long-Run Growth Versus Welfare Book in PDF, ePub and Kindle
This paper analyzes the effects of distortionary taxes on growth and welfare in an endogenous growth model with a public capital externality. The model is calibrated to the U.S. economy, and experiments are run under which the tax regime is shifted from the current mix of capital income, labor income, and consumption taxes to a fiscal policy regime with complete reliance on a single source of taxation, including lump-sum tax. We find that tax policy changes that induce higher growth rate do not necessarily result in higher welfare due to different transitory effects. In fact, a shift to capital income tax while delivering highest long-run growth results in lowest welfare. Furthermore, long-run gains take many years - a generation - to start getting realized. Among different sources of taxation, we find that, in the long run, complete reliance on a consumption tax dominates the current tax regime; however, the current tax regime dominates an exclusive labor income tax, which in turn is less welfare-reducing than an exclusive capital income tax. These results are due to the fact that taxes on labor income and capital income distort investment decisions in reproducible capital, i.e., human capital and physical capital, and therefore have cumulative effects that do not result from a tax on consumption. Unlike previous studies, we account for the welfare effects of transition using optimal decision rules all along the transition path.
Author | : M. Keen |
Publisher | : |
Total Pages | : 40 |
Release | : 1988 |
Genre | : Economics |
ISBN | : |
Download Welfare effects of capital income tax reform in a world economy Book in PDF, ePub and Kindle
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 257 |
Release | : 2015-04-20 |
Genre | : Business & Economics |
ISBN | : 1498344658 |
Download Fiscal Policy and Long-Term Growth Book in PDF, ePub and Kindle
This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.
Author | : Knud Jørgen Munk |
Publisher | : |
Total Pages | : |
Release | : 2008 |
Genre | : |
ISBN | : |
Download Welfare Effects of Tax and Price Changes Revisited Book in PDF, ePub and Kindle
Author | : |
Publisher | : Congress |
Total Pages | : 168 |
Release | : 1997 |
Genre | : Income tax |
ISBN | : |
Download The Economic Effects of Comprehensive Tax Reform Book in PDF, ePub and Kindle
I. Introduction -- II. Recent tax reform proposals -- III. Effects on the macroeconomy -- IV. Effects on the allocation of resources -- V. Effects on economic efficiency -- Appendix A. What will a consumption-based tax do to the price level and the value of existing assets? -- Appendix B. Simulation models and the saving response -- Appendix C. Fullerton-Rogers General-equilibrium model.
Author | : David Altig |
Publisher | : |
Total Pages | : 52 |
Release | : 1992 |
Genre | : Flat-rate income tax |
ISBN | : |
Download The Efficiency and Welfare Effects of Tax Reform Book in PDF, ePub and Kindle
Author | : |
Publisher | : |
Total Pages | : 26 |
Release | : 1995 |
Genre | : |
ISBN | : |
Download The Welfare Effects of Tax Reforms in a Monetary Economy Book in PDF, ePub and Kindle
Author | : Andrew Hodge |
Publisher | : International Monetary Fund |
Total Pages | : 50 |
Release | : 2016-08-20 |
Genre | : Business & Economics |
ISBN | : 1475529295 |
Download The Design of Fiscal Reform Packages Book in PDF, ePub and Kindle
This paper studies the impact on growth, welfare, and government debt of fiscal reform packages in a theoretical model drawing together three key features of the endogenous growth literature: (i) investment in technology (in the form of human capital) offsets diminishing marginal productivity of private capital, allowing for perpetual growth in output per capita; (ii) changes in investment behavior because of cuts to distortionary tax rates impact long-run growth; and (iii) public capital has a role influencing total factor productivity and growth. A quantitative simulation using reasonable parameter values suggests that modest capital and/or labor income tax cuts and public investment increases have significant positive effects on consumer welfare but small effects on per capita income growth, where fiscal costs are offset by reductions in unproductive government spending. Capital income tax cuts and public investment increases continue to boost welfare when offset by consumption tax rises (rather than spending cuts), although the welfare benefits of modest labor income tax cuts are outweighed by the costs of a compensating consumption tax increase.