Tax reforms, "free lunches", and "cheap lunches" in open economies / prepared by Giovanni Ganelli and Juha Tervala.

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 f...

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Main Authors: Ganelli, Giovanni (Author), Tervala, Juha (Author)
Corporate Author: IMF Institute
Format: eBook
Language:English
Published: Washington, D.C. : International Monetary Fund, ©2008.
Series:IMF working paper ; WP/08/227.
Subjects:
Online Access:Click for online access

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100 1 |a Ganelli, Giovanni,  |e author.  |1 https://id.oclc.org/worldcat/entity/E39PCjvxPTGP3kjDQRyFT7mmVC 
245 1 0 |a Tax reforms, "free lunches", and "cheap lunches" in open economies /  |c prepared by Giovanni Ganelli and Juha Tervala. 
260 |a Washington, D.C. :  |b International Monetary Fund,  |c ©2008. 
300 |a 1 online resource (30 pages) 
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490 1 |a IMF working paper ;  |v WP/08/227 
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500 |a "September 2008." 
504 |a Includes bibliographical references (pages 28-30). 
520 |a 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 8 1/2 to 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 
588 0 |a Print version record. 
506 |3 Use copy  |f Restrictions unspecified  |2 star  |5 MiAaHDL 
533 |a Electronic reproduction.  |b [Place of publication not identified] :  |c HathiTrust Digital Library,  |d 2011.  |5 MiAaHDL 
538 |a Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.  |u http://purl.oclc.org/DLF/benchrepro0212  |5 MiAaHDL 
583 1 |a digitized  |c 2011  |h HathiTrust Digital Library  |l committed to preserve  |2 pda  |5 MiAaHDL 
505 0 |a 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 
650 0 |a Taxation  |x Econometric models. 
650 0 |a Public welfare  |x Econometric models. 
650 7 |a Public welfare  |x Econometric models  |2 fast 
650 7 |a Taxation  |x Econometric models  |2 fast 
650 7 |a Steuerreform.  |2 stw 
650 7 |a Offene Volkswirtschaft.  |2 stw 
650 7 |a Zwei-Länder-Modell.  |2 stw 
650 7 |a Ungleichgewichtstheorie.  |2 stw 
650 7 |a Laffer-Kurve.  |2 stw 
650 7 |a Theorie.  |2 stw 
700 1 |a Tervala, Juha,  |e author.  |1 https://id.oclc.org/worldcat/entity/E39PCjyGcHWYktm8rBdYyPvjyb 
710 2 |a IMF Institute. 
776 0 8 |i Print version:  |a Ganelli, Giovanni.  |t Tax reforms, "free lunches", and "cheap lunches" in open economies.  |d Washington, D.C. : International Monetary Fund, ©2008  |w (OCoLC)316211599 
830 0 |a IMF working paper ;  |v WP/08/227. 
856 4 0 |u https://ebookcentral.proquest.com/lib/holycrosscollege-ebooks/detail.action?docID=1608038  |y Click for online access 
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