Progressive Taxation Macroeconomic Stabilization And Efficiency In Europe

Author : Carlos Martinez-Mongay
Publisher :
ISBN 13 :
Total Pages : 56 pages
Book Rating : 4.14/5 ( download)

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Download or read book Progressive Taxation, Macroeconomic Stabilization and Efficiency in Europe written by Carlos Martinez-Mongay and published by . This book was released on 2005 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debates the stability/efficiency tradeoff of automatic stabilizers. A simple AD-AS two-country model is presented and illustrates circumstances where a reduction in taxes can foster stabization. The testable implication from the model is that tax cuts can either increase or decrease volatility depending on the structure of the taxation system. Hence, lowering taxes for efficiency purposes may have not cost in terms of stabilization. This implication is tested for OECD countries over the period 1960-2000 taking account of the endogeneity and omitted variables issues identified in the literature. We found acceptably robust evidence that the size of governments in OECD countries has played a stabilizing role for both output and inflation. However, the relationship between government size and macroeconomic stability is not linear. The compostiion of public finances, in particular the tax mix, matters for output and price volatility. Distorting taxes, namely taxes on labor, might have negative effects on macroeconomic stability. Consequently, the potential trade off between stability and flexibility might not exist.

Author : International Monetary Fund. Fiscal Affairs Dept.
Publisher : International Monetary Fund
ISBN 13 : 1498345204
Total Pages : 78 pages
Book Rating : 4.00/5 ( download)

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Download or read book Tax Policy, Leverage and Macroeconomic Stability written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2016-12-10 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risks to macroeconomic stability posed by excessive private leverage are significantly amplified by tax distortions. ‘Debt bias’ (tax provisions favoring finance by debt rather than equity) has increased leverage in both the household and corporate sectors, and is now widely recognized as a significant macroeconomic concern. This paper presents new evidence of the extent of debt bias, including estimates for banks and non-bank financial institutions both before and after the global financial crisis. It presents policy options to alleviate debt bias, and assesses their effectiveness. The paper finds that thin capitalization rules restricting interest deductibility have only partially been able to address debt bias, but that an allowance for corporate equity has generally proved effective. The paper concludes that debt bias should feature prominently in countries’ tax reform plans in the coming years.

Author : Khaled Abdel-Kader
Publisher : INTERNATIONAL MONETARY FUND
ISBN 13 : 9781513561561
Total Pages : 38 pages
Book Rating : 4.61/5 ( download)

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Download or read book Tax Policy and Inclusive Growth written by Khaled Abdel-Kader and published by INTERNATIONAL MONETARY FUND. This book was released on 2020-12-04 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the theory and practice of tax design to achieve an efficient and equitable outcome, i.e. in support of inclusive growth. It starts with a discussion of the key principles from tax theory to guide practical tax design. Then, it elaborates on more granular tax policy, discussing key choices in the structure of the personal income tax on labor and capital income, taxes on wealth, the corporate income tax, and consumption taxes. The paper concludes by highlighting the political economy considerations of the issues with concrete recommedtions as to how to implement tax reform.

Author : Mr.Xavier Debrun
Publisher : International Monetary Fund
ISBN 13 : 1455200700
Total Pages : 48 pages
Book Rating : 4.02/5 ( download)

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Download or read book Fiscal Policy and Macroeconomic Stability written by Mr.Xavier Debrun and published by International Monetary Fund. This book was released on 2010-05-01 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper revisits the link between fiscal policy and macroeconomic stability. Two salient features of our analysis are (1) a systematic test for the government’s ambivalent role as a shock absorber and a shock inducer—removing a downward bias present in existing estimates of the impact of automatic stabilizers—and (2) a broad sample of advanced and emerging market economies. Results provide strong support for the view that fiscal stabilization operates mainly through automatic stabilizers. Also, the destabilizing impact of policy changes not systematically related to the business cycle may not be as robust as suggested in the literature.

Author : Nordiska Ministerrådet
Publisher : Nordic Council of Ministers
ISBN 13 : 9289320893
Total Pages : 224 pages
Book Rating : 4.94/5 ( download)

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Download or read book Nordic Economic Policy Review Number 1 / 2010 written by Nordiska Ministerrådet and published by Nordic Council of Ministers. This book was released on 2010 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : J. Ferreiro
Publisher : Springer
ISBN 13 : 0230228267
Total Pages : 219 pages
Book Rating : 4.69/5 ( download)

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Download or read book Fiscal Policy in the European Union written by J. Ferreiro and published by Springer. This book was released on 2008-11-27 with total page 219 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive analysis of national fiscal policies in the European Union and in the European Monetary Union. Adopting a critical perspective, the book offers a deep insight into the consequences of the current strategy of national fiscal policies on economic activity.

Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 1498344658
Total Pages : 257 pages
Book Rating : 4.54/5 ( download)

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Download or read book Fiscal Policy and Long-Term Growth written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-04-20 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.

Author : Mr.David Coady
Publisher : International Monetary Fund
ISBN 13 : 1513547046
Total Pages : 27 pages
Book Rating : 4.46/5 ( download)

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Download or read book Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers written by Mr.David Coady and published by International Monetary Fund. This book was released on 2020-06-26 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, i.e., a larger poverty impact for a given transfer budget or lower fiscal cost for a given poverty impact, in practice targeting also comes with various costs, including incentive, administrative, social and political costs. The appropriate balance between targeted and universal transfers will therefore depend on how countries decide to trade-off these costs and benefits as well as on the potential for redistribution through taxes. This paper discusses the trade-offs that arise in different country contexts and the potential for strengthening fiscal redistribution in advanced and developing countries, including through expanding transfer coverage and progressive tax financing.

Author : Ms.Era Dabla-Norris
Publisher : International Monetary Fund
ISBN 13 : 1484377451
Total Pages : 47 pages
Book Rating : 4.51/5 ( download)

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Download or read book Macroeconomic Effects of Tax Rate and Base Changes: Evidence from Fiscal Consolidations written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2018-09-28 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.

Author : Mr.James Daniel
Publisher : International Monetary Fund
ISBN 13 : 9781589065130
Total Pages : 80 pages
Book Rating : 4.31/5 ( download)

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Download or read book Fiscal Adjustment for Stability and Growth written by Mr.James Daniel and published by International Monetary Fund. This book was released on 2006-08-17 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: The pamphlet (which updates the 1995 Guidelines for Fiscal Adjustment) presents the IMF’s approach to fiscal adjustment, and focuses on the role that sound government finances play in promoting macroeconomic stability and growth. Structured around five practical questions—when to adjust, how to assess the fiscal position, what makes for successful adjustment, how to carry out adjustment, and which institutions can help—it covers topics such as tax policies, debt sustainability, fiscal responsibility laws, and transparency.