Advanced Search
MyIDEAS: Login

Cascading, revenue neutrality and the VAT: Some theoretical results

Contents:

Author Info

  • Mukhopadhyaya, Hiranya

    (National Institute of Public Finance and Policy)

Registered author(s):

    Abstract

    The conventional conclusion is that, ceteris paribus, a revenue-neutral VAT would have no impact on the aggregate price level, unless it elicits a supply response due to a lower degree of distortions. This paper shows that even if we ignore supply response, a revenue-neutral VAT can lead to higher output and lower price in a demand-constrained output regime. However, price will remain unchanged in a supply-constrained output regime.

    Download Info

    If 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.
    File URL: http://www.nipfp.org.in/working_paper/wp_1997_03.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by National Institute of Public Finance and Policy in its series Working Papers with number 97/3.

    as in new window
    Length: 15
    Date of creation: Apr 1997
    Date of revision:
    Handle: RePEc:npf:wpaper:97/3

    Note: Working Paper 3, 1997
    Contact details of provider:
    Web page: http://www.nipfp.org.in

    Related research

    Keywords: Value added tax;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:npf:wpaper:97/3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (S.Siva Chidambaram).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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