Is A Tax Cut On Cultural Goods Consumption Actually Desirable?:A Microsimulation Analysis
AbstractProposals for tax cuts on cultural goods represent an ongoing debate in cultural policy. The main aim of this paper is to shed some light on this debate using microsimulation tools. First, we have estimated an Almost Ideal Demand System for nineteen different groups of goods, including cultural goods. Expenditure and price elasticities have been obtained from this model. Using this information, three alternatives cuts in the V.A.T. rate on cultural goods have been microsimulated and evaluated in terms of revenue and welfare. These types of fiscal reforms will lead to welfare and efficiency gains that can be described as regressive.
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0402001.
Length: 23 pages
Date of creation: 05 Feb 2004
Date of revision: 06 Feb 2004
Note: Type of Document - pdf; prepared on WinXP; pages: 23
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Microsimulation; tax reforms; cultural consumption; welfare;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Z10 - Other Special Topics - - Cultural Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-08 (All new papers)
- NEP-CMP-2004-02-08 (Computational Economics)
- NEP-CUL-2004-02-08 (Cultural Economics)
- NEP-MIC-2004-02-08 (Microeconomics)
- NEP-PUB-2004-02-15 (Public Finance)
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.:
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