Government revenue, private welfare, and tax reform in a small open economy
Chao, Chi-Chur, Hazari, Bharat. R and Sgro, Pasquale 2004, Government revenue, private welfare, and tax reform in a small open economy, in Proceedings of The Global Business and Finance Research Conference, London, Finance Forum, July 2004, [Global Business and Finance Research Conference], [London, England], pp. 162-167.
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Title
Government revenue, private welfare, and tax reform in a small open economy
Proceedings of The Global Business and Finance Research Conference, London, Finance Forum, July 2004
Editor(s)
Turan Senguder, Gordon
Publication date
2004
Start page
162
End page
167
Publisher
[Global Business and Finance Research Conference]
Place of publication
[London, England]
Summary
This paper examines the welfare and revenue effects of consumption and income taxes in a general equilibrium model with variable supply of labour and public goods. We derive the optimal consumption and income tax rates for such an economy. It is established that it is better to lower the income tax rate and increase the rate of consumption tax when this economy is in a downturn.