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Tax Reform and Coordination in a Currency Union
Benjamin Carton
eBook Edition: 2012
 
We propose a two-country DSGE model to analyze short-term and long-term impact of a modification of consumption and labor tax rate in one country in a currency union. The model embodies the fact that firms differ in their pricing behavior after a VAT tax increase. Due to the common monetary policy, national tax policies have large spill-overs on the rest of the currency union. Furthermore, a fiscal devaluation is different from a nominal devaluation due to the common monetary policy.(From Author)

eBook Contents

Non-technical summary - Abstract - Résumé non technique - Résumé court - Introduction - The model - Long term impact of taxation in an economy with capital - The short term impact of national tax reform - Conclusion - Bibliography - Appendix

eBook License: Copyrighted (Personal Use Only by downloading from CEPII)

Free PDF eBook - 553 Kb - 28 Pages
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