A TALE OF TAX POLICIES IN OPEN ECONOMIES

• 成果类型: Article
• 署名作者: Auray, Stephane; Eyquem, Aurelien; Gomme, Paul
• 署名单位: Ecole Nationale de la Statistique et de l'Analyse de l'Information (ENSAI); Centre National de la Recherche Scientifique (CNRS); Concordia University - Canada; Universite de Montreal
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12199
• 发表日期: 2016
• 页码: 1299-1333
• 关键词: monetary-policy; adjustment; taxation

摘要

To evaluate fiscal policy reforms for Euro-area countries, this article develops and calibrates a small open economy model. Debt reduction reforms require higher tax rates in the short term in exchange for lower rates in the long term as the debt-servicing burden falls. Using the capital income tax to implement such a policy leads to welfare gains; the consumption tax, a very small welfare gain; and the labor income tax, a welfare loss. Holding fixed the long-run debt-output ratio, offsetting a lower capital income tax with either a higher labor income or consumption tax generally yields welfare gains.