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Taxation, growth and welfare: Dynamic effects of Estonia’s 2000 income tax act Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Funke (Hamburg University, Department of Economics)
Holger Strulik (Hamburg University, Department of Economics)
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This paper analyses the long-run effects of Estonia’s 2000 Income Tax Act with a dynamic general equilibrium model. Specifically, we consider the impact of the shift from an imputation system to one where companies only pay taxes on distributed profits. Balanced growth paths, transitional dynamics and welfare costs are computed. Our results indicate that the 2000 Income Tax Act leads to higher per capita income and investment, but lower welfare. A sensitivity analysis shows the results are rather robust.
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Paper provided by EconWPA in its series Macroeconomics with number
0401009.
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Length: 26 pages
Date of creation: 30 Jan 2004Date of revision:
Handle: RePEc:wpa:wuwpma:0401009Note: Type of Document - pdf; prepared on Win98; pages: 26Contact details of provider: Web page: http://129.3.20.41
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Keywords: growth welfare taxation tax reform Estonia Other versions of this item:
Article Paper Michael Funke & Holger Strulik, 2003.
"Taxation, Growth and Welfare: Dynamic Effects of Estonia´s 2000 Income Tax Act ,"
Quantitative Macroeconomics Working Papers
20304, Hamburg University, Department of Economics.
[Downloadable!] Funke, Michael & Strulik, Holger, 2003.
"Taxation, growth and welfare: Dynamic effects of Estonia’s 2000 income tax act ,"
BOFIT Discussion Papers
10/2003, Bank of Finland, Institute for Economies in Transition.
[Downloadable!] Find related papers by JEL classification: H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , 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.)
Aaro Hazak, 2006.
"Dividend Decision under Distributed Profit Taxation: Investor’s Perspective ,"
Working Papers
145, School of Economics and Business Administration, Tallinn University of Technology.
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Aaro Hazak, 2007.
"Companies’ Financial Decisions under the Distributed Profit Taxation Regime of Estonia ,"
Working Papers
155, School of Economics and Business Administration, Tallinn University of Technology.
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