Capital and Consumption Tax Reforms in a Small Open Economy
Chao, Chi-Chur and Yu, Eden S.H 2014, Capital and Consumption Tax Reforms in a Small Open Economy, Review of International Economics, vol. 22, no. 1, pp. 1-12, doi: 10.1111/roie.12093.
Attached Files
Name
Description
MIMEType
Size
Downloads
Title
Capital and Consumption Tax Reforms in a Small Open Economy
The effects of a reform in capital and consumption taxes on private welfare and government tax revenue are examined for a small open, capital-importing economy. A trade-off between private welfare and tax revenue is encountered in maximizing social welfare. Nonetheless, lowering capital taxes and raising consumption taxes can increase both private welfare and tax revenue if the initial tax rates are not optimal. In addition, a tax reform by this fashion is a likely response to a rise in the foreign rate of return on capital.
Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.