IDEAS home Printed from https://ideas.repec.org/p/cmf/wpaper/wp1991_9105.html
   My bibliography  Save this paper

Financing Budget Deficits by Seigniorage and Implicit Taxation: The Cases of Spain and Portugal

Author

Listed:
  • Rafael Repullo

Abstract

This paper evaluates the contribution of seigniorage and implicit taxation of financial intermediation to the financing of the budget deficits in Spain and Portugal during the 1980s. The paper starts with a simple partial equilibrium model of the banking sector, which is used to derive two sets of comparative static results related to the main policy instruments used by the Spanish and the Portuguese central banks, namely reserve requirements and credit ceilings. Both control mechanisms amount to an implicit tax on financial intermediation, whose revenue can be added to seigniorage. The paper sets out an analytical framework, based on a particular formalization of the government intertemporal budget constraint, which justifies the measures of seigniorage and implicit taxation that are computed for the period 1980-1990. The results show that this source of revenue is very significant: its average value for the 1980s is 1.71% of GDP for Spain and 3.98% of GDP for Portugal.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rafael Repullo, 1991. "Financing Budget Deficits by Seigniorage and Implicit Taxation: The Cases of Spain and Portugal," Working Papers wp1991_9105, CEMFI.
    • Handle: RePEc:cmf:wpaper:wp1991_9105
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patrick Honohan, 1994. "The Fiscal Approach to Financial Intermediation Policy," Papers WP049, Economic and Social Research Institute (ESRI).
    2. Fransisco Comín, 2006. "Reaching a Political Consensus for Tax Reform in Spain: The Moncloa Pacts, Joining the European Union and the Rest of the Journey," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0601, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Patrick Honohan, 2003. "Taxation of Financial Intermediation : Theory and Practice for Emerging Economines," World Bank Publications - Books, The World Bank Group, number 15122, December.

    More about this item

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cmf:wpaper:wp1991_9105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Araceli Requerey (email available below). General contact details of provider: https://edirc.repec.org/data/cemfies.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.