La TVA sociale : bonne ou mauvaise idée ?
AbstractThe quantitative and dynamic consequence of a social VAT reform, i.e. a fiscal reform consisting in substituting VAT for social contributions, is assessed using two general equilibrium models. The first one is a Walrasian model with no other frictions than distortionary taxation of labor and capital incomes and consumption. The second one introduces in addition matching frictions in the labor market. Two alternative financing schemes are considered for the practical details of implementing the social VAT. In all cases, the fiscal reform turns out to generate a small, positive long--run effect on aggregate variables and yields a modest welfare gain. In the no--friction model, this welfare gain is substantially reduced when the reform is pre--announced six quarters prior to implementation. The effect of such a pre-announced reform are smaller when labor market frictions are taken into account.
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 InfoPaper provided by Banque de France in its series Working papers with number 244.
Length: 31 pages
Date of creation: 2009
Date of revision:
social VAT; DGE; pre-announced fiscal reform.;
Other versions of this item:
- E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
- E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-24 (All new papers)
- NEP-DGE-2009-10-24 (Dynamic General Equilibrium)
- NEP-MAC-2009-10-24 (Macroeconomics)
- NEP-MIC-2009-10-24 (Microeconomics)
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.:
- Adjemian, S. & Cahn, C. & Devulder, A. & Maggiar, N., 2009. "Variantes en Univers Incertain," Working papers 236, Banque de France.
- Juillard, Michel, 1996. "Dynare : a program for the resolution and simulation of dynamic models with forward variables through the use of a relaxation algorithm," CEPREMAP Working Papers (Couverture Orange) 9602, CEPREMAP.
- Jean-Pierre Laffargue, 2000. "Effets et financement d'une réduction des charges sur les bas salaires," Revue Économique, Programme National Persée, vol. 51(3), pages 489-498.
- Picard, P.M. & Toulemonde, E., 1999.
"On the Equivalence of Taxes Paid by Employers and Employees,"
215, Notre-Dame de la Paix, Sciences Economiques et Sociales.
- Picard, Pierre M & Toulemonde, Eric, 2001. "On the Equivalence of Taxes Paid by Employers and Employees," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(4), pages 461-70, September.
- Blundell, Richard & Macurdy, Thomas, 1999.
"Labor supply: A review of alternative approaches,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695
- Jean-Pierre Laffargue, 2000. "Effets et financement d'une réduction des charges sur les bas salaires," Revue économique, Presses de Sciences-Po, vol. 0(3), pages 489-498.
- Finn E. Kydland & Edward C. Prescott, 1994.
"The computational experiment: an econometric tool,"
178, Federal Reserve Bank of Minneapolis.
- Hosios, Arthur J, 1990. "On the Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 279-98, April.
- Enrique G. Mendoza & Assaf Razin & Linda L. Tesar, 1995.
"Effective Tax Rates in Macroeconomics: Cross-Country Estimates of Tax Rates on Factor Incomes and Consumption,"
NBER Working Papers
4864, National Bureau of Economic Research, Inc.
- Mendoza, Enrique G. & Razin, Assaf & Tesar, Linda L., 1994. "Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 297-323, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Christine Petit-Djemad).
If references are entirely missing, you can add them using this form.