Tax reforms, "free lunches", and "cheap lunches" in open economies

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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Bibliographic Details
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:
Taxation > Econometric models.
Public welfare > Econometric models.
Public welfare > Econometric models
Taxation > Econometric models
Steuerreform.
Offene Volkswirtschaft.
Zwei-Länder-Modell.
Ungleichgewichtstheorie.
Laffer-Kurve.
Theorie.
Online Access:Click for online access
Table of 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

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