Tax Reform and Coordination in a Currency Union
AbstractWe 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.
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 CEPII research center in its series Working Papers with number 2012-23.
Date of creation: Oct 2012
Date of revision:
Fiscal Policy; Monetary Policy; DSGE; Value added tax; Monetary Union;
Other versions of this item:
- F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
This paper has been announced in the following NEP Reports:
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.:
- Coenen, Günter & McAdam, Peter & Straub, Roland, 2008.
"Tax reform and labour-market performance in the euro area: A simulation-based analysis using the New Area-Wide Model,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 32(8), pages 2543-2583, August.
- Coenen, Günter & McAdam, Peter & Straub, Roland, 2007. "Tax reform and labour-market performance in the euro area: a simulation-based analysis using the New Area-Wide Model," Working Paper Series 0747, European Central Bank.
- Jerome Henry & Pablo Hernandez de Cos & Sandro Momigliano, 2004.
"The short-term impact of government budgets on prices; evidence from macroeconometric models,"
Temi di discussione (Economic working papers)
523, Bank of Italy, Economic Research and International Relations Area.
- jerome henry & sandro momigliano & pablo hernandez de cos, 2005. "The short-term impact of government budgets on prices Evidence from macroeconometric models," Macroeconomics 0501020, EconWPA.
- Jérôme Henry & Pablo Hernández de Cos & Sandro Momigliano, 2004. "The short-term impact of government budgets on prices: evidence from macroeconometrics models," Banco de Espaï¿½a Working Papers 0418, Banco de Espa�a.
- Stéphane Adjemian & Christophe Cahn & Antoine Devulder & Nicolas Maggiar, 2008.
"Variantes en univers incertain,"
Économie et Prévision,
Programme National Persée, vol. 183(2), pages 223-238.
- Frank Smets & Raf Wouters, 2002.
"An estimated dynamic stochastic general equilibrium model of the euro area,"
Working Paper Research
35, National Bank of Belgium.
- Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, 09.
- Stefan Boeters & Christoph Bohringer & Thiess Buttner & Margit Kraus, 2010.
"Economic effects of VAT reforms in Germany,"
Taylor & Francis Journals, vol. 42(17), pages 2165-2182.
- Stéphane Gauthier, 2006.
"Un exercice de TVA sociale,"
2006-07, Centre de Recherche en Economie et Statistique.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.