Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5054532 | Economic Modelling | 2014 | 7 Pages |
Abstract
â¢We study an endogenous growth model with 3 sectors, calibrated for the US.â¢We examine three fiscal policy reforms.â¢Adopting a consumption tax system increases growth and welfare.â¢Adopting an income tax system decreases growth and welfare.â¢Eliminating double taxation yields non-negligible growth and welfare gains.
We evaluate the growth and welfare effects of budget-neutral reforms in the US tax system. Large gains in welfare and growth could result from adopting a consumption-based tax system. In contrast, significant welfare and growth losses would follow after implementing an income tax-based reform. Eliminating double taxation of firms' profits would yield non-negligible welfare and growth gains.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Manuel A. Gómez, Tiago N. Sequeira,