An Evaluation of the Revenue side as a source of fiscal consolidation in high debt economies
AbstractUnsustainable levels of debt for some European economies is causing enormous strain in the Euro area. How to tide over the debt crisis seems to be the most important objective the European policy makers are currently facing. We use a dynamic general equilibrium closed economy model to compute the dynamic Laffer Curves for Portugal, Ireland, Greece and Spain for different class of taxes. We conclude that there exists scope for considerable revenue generation by raising certain class of taxes. Thus revenue generation, along with ﬁscal consolidation holds key for debt reduction.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37956.
Date of creation: 07 Apr 2012
Date of revision:
fiscal consolidation; dynamic laffer curve; tax revenue; fiscal policy;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-17 (All new papers)
- NEP-DGE-2012-04-17 (Dynamic General Equilibrium)
- NEP-EEC-2012-04-17 (European Economics)
- NEP-MAC-2012-04-17 (Macroeconomics)
- NEP-PBE-2012-04-17 (Public Economics)
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