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Titolo
Macroeconomic effects of an indirect tax substitution
Autor(es)
Soggetto
Indirect taxation
Tax substitution
Balanced budget multiplier
Clasificación UNESCO
5308 Economía General
Fecha de publicación
2008
Editore
Springer-Verlag
Citación
Torregrosa, R.J. (2008). Macroeconomic effects of an indirect tax substitution. Journal of Economics, 94(3), (pp.199-221).
Resumen
We study an indirect tax reform in a general equilibrium model with
imperfect competition for both the Cournot and the Free entry equilibria.We show that
it is possible to attain a positive balanced budget multiplier by means of a substitution
of specific by ad valorem taxation. Moreover, although any tax substitution causes
higher prices and the flow up of firms in the long-run, the Free entry equilibrium
output can increase with respect to that of the Cournot equilibrium. Finally, in contrast
with the partial equilibrium, welfare decreasing tax reforms are likely to occur even
when the balanced budget multiplier is positive.
URI
ISSN
0931-8658
DOI
10.1007/s00712-008-0003-5
Versión del editor
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