Comparing marginal commodity tax reforms in Japan and Korea
AbstractWe examine the impact of the marginal commodity tax reforms in Japan and Korea, using data from the official household surveys of the two countries. Based on the estimations of two demand systems (linear expenditure system (LES) and almost ideal demand system(AIDS)), we compare the marginal costs of taxing major commodity groups, examine distributive gains from tax reforms based on concentration curves, and assess the impact on poverty based on consumption dominance curves. In particular, we find that revenue-neutral marginal tax reforms incorporating a reduced tax on food and beverages are more likely to face an efficiency-equity trade-off in Korea than in Japan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Asian Economics.
Volume (Year): 21 (2010)
Issue (Month): 6 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/asieco
Marginal commodity tax reform Concentration curve Consumption dominance curve;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shlomo Yitzhaki & Joel Slemrod, 1987.
"Welfare Dominance: An Application to Commodity Taxation,"
NBER Working Papers
2451, National Bureau of Economic Research, Inc.
- Yitzhaki, Shlomo & Slemrod, Joel, 1991. "Welfare Dominance: An Application to Commodity Taxation," American Economic Review, American Economic Association, vol. 81(3), pages 480-96, June.
- Seki Asano & Takashi Fukushima, 2006. "Some Empirical Evidence On Demand System And Optimal Commodity Taxation," The Japanese Economic Review, Japanese Economic Association, vol. 57(1), pages 50-68.
- Paul Makdissi & Jean-Yves Duclos, 2002.
"Socially-Improving Tax Reforms,"
Cahiers de recherche
02-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised 2004.
- James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
- Ray, Ranjan, 1999.
"Marginal and Non-marginal Commodity Tax Reforms with Rank Two and Rank Three Demographic Demand Systems,"
Oxford Economic Papers,
Oxford University Press, vol. 51(4), pages 689-712, October.
- Ray, R, 1997. "Marginal and Non Marginal Commodity Tax Reforms with Rank Two and Rank Three Demographic Demand Systems," Papers 1997-02, Tasmania - Department of Economics.
- Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
- Ray, Ranjan, 1997.
" Issues in the Design and Reform of Commodity Taxes: Analytical Results and Empirical Evidence,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 11(4), pages 353-88, December.
- Ray, R., 1996. "Issues in the Design and Reform of Commodity Taxes: Analytical Results and Empirical Evidence," Papers 1996-02, Tasmania - Department of Economics.
- Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
- Alessandro Santoro, 2007.
"Marginal Commodity Tax Reforms: A Survey,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 21(4), pages 827-848, 09.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Paolo Liberati, 2003. "Poverty Reducing Reforms and Subgroup Consumption Dominance Curves," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 589-601, December.
- David Madden, 1995. "An analysis of indirect tax reform in Ireland in the 1980s," Fiscal Studies, Institute for Fiscal Studies, vol. 16(1), pages 18-37, May.
- Pashardes, Panos, 1993. "Bias in Estimating the Almost Ideal Demand System with the Stone Index Approximation," Economic Journal, Royal Economic Society, vol. 103(419), pages 908-15, July.
- Decoster, Andre & Schokkaert, Erik, 1990. "Tax reform results with different demand systems," Journal of Public Economics, Elsevier, vol. 41(3), pages 277-296, April.
- Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.