IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v74y1998i227p373-383.html
   My bibliography  Save this article

The Welfare Effect on Different Income Groups of Indirect Tax Changes and Inflation in New Zealand

Author

Listed:
  • JOHN CREEDY

Abstract

This paper has two main aims, both associated with measuring the welfare effects of price changes. First, it examines the distributional effects of the change in the indirect tax system in New Zealand during the mid‐1980s. Second, it examines the distributional impact of recent inflation in New Zealand. The results confirm those of previous studies which found that indirect taxes in New Zealand did not have a substantially larger impact on low income groups compared with high income groups. Furthermore, the introduction of the goods and services tax does not appear to be regressive. However, recent price changes in New Zealand have had a higher impact on the high income groups, although this tendency is quite small.

Suggested Citation

  • John Creedy, 1998. "The Welfare Effect on Different Income Groups of Indirect Tax Changes and Inflation in New Zealand," The Economic Record, The Economic Society of Australia, vol. 74(227), pages 373-383, December.
    • Handle: RePEc:bla:ecorec:v:74:y:1998:i:227:p:373-383
    DOI: 10.1111/j.1475-4932.1998.tb01932.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1998.tb01932.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1998.tb01932.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Antonia Cornwell & John Creedy, 1997. "environmental taxes and economic welfare," Books, Edward Elgar Publishing, number 1304, March.
    2. Blinder, Alan S & Esaki, Howard Y, 1978. "Macroeconomic Activity and Income Distribution in the Postwar United States," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 604-609, November.
    3. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, November.
    4. Pazner, Elisha A & Sadka, Efraim, 1980. "Excess-Burden and Economic Surplus as Consistent Welfare Indicators," Public Finance = Finances publiques, , vol. 35(3), pages 439-449.
    5. Slesnick, Daniel T., 1990. "Inflation, relative price variation, and inequality," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 135-151.
    6. Creedy, J, 1997. "The Distributional Effects of Indirect Tax Reform and Inflation in New Zealand," Department of Economics - Working Papers Series 557, The University of Melbourne.
    7. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
    8. Ebert, Udo, 1995. "Consumer's Surplus: Simple Solutions to an Old Problem," Bulletin of Economic Research, Wiley Blackwell, vol. 47(4), pages 285-294, October.
    9. Stoker, Thomas M, 1986. "The Distributional Welfare Effects of Rising Prices in the United States: The 1970's Experience," American Economic Review, American Economic Association, vol. 76(3), pages 335-349, June.
    10. Kay, J. A., 1980. "The deadweight loss from a tax system," Journal of Public Economics, Elsevier, vol. 13(1), pages 111-119, February.
    11. Muellbauer, John, 1974. "Prices and Inequality: The United Kingdom Experience," Economic Journal, Royal Economic Society, vol. 84(333), pages 32-55, March.
    12. Susan St John, 1993. "Tax and Welfare Reforms in New Zealand," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 26(4), pages 37-42, October.
    13. Pauwels, Wilfried, 1986. "Correct and Incorrect Measures of the Deadweight Loss of Taxation," Public Finance = Finances publiques, , vol. 41(2), pages 267-276.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Hopkins, Sandra & Cumming, Jacqueline, 2001. "The impact of changes in private health expenditure on New Zealand households," Health Policy, Elsevier, vol. 58(3), pages 215-229, December.
    2. Jason Loughrey & Cathal O’Donoghue, 2012. "The Welfare Impact of Price Changes on Household Welfare and Inequality 1999-2011," The Economic and Social Review, Economic and Social Studies, vol. 43(1), pages 31-66.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Soest, A.H.O., 1990. "Essays on micro-econometric models of consumer demand and the labour market," Other publications TiSEM be045d62-a73d-4d7c-a591-f, Tilburg University, School of Economics and Management.
    2. Mickaël Beaud & Thierry Blayac & Patrice Bougette & Soufiane Khoudmi & Philippe Mahenc & Stéphane Mussard, 2013. "Estimation du coût d'opportunité des fonds publics pour l'économie française," Working Papers halshs-01077141, HAL.
    3. Ravallion, Martin & van de Walle, Dominique, 1989. "Cost of living differences between urban and rural areas in Indonesia," Policy Research Working Paper Series 341, The World Bank.
    4. Desiderio Romero Jordán & José Félix Sanz Sanz, 2003. "El Impuesto sobre las Ventas Minoristas de Determinados Hidrocarburos. Una evaluación de sus efectos económicos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 164(1), pages 49-73, march.
    5. Bente Halvorsen, 2009. "Conflicting Interests in Environmental Policy-making?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 287-305, October.
    6. Ugo Colombino & Nizamul Islam, 2021. "Combining microsimulation and optimization to identify optimal universalistic tax-transfer rule," LISER Working Paper Series 2021-06, Luxembourg Institute of Socio-Economic Research (LISER).
    7. Gergely, Zsombor, 1999. "Az áremelkedés differenciáló hatásáról [The differentiating effect of increase in prices]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 993-1012.
    8. Bosmans, Kristof & Decancq, Koen & Ooghe, Erwin, 2018. "Who's afraid of aggregating money metrics?," Theoretical Economics, Econometric Society, vol. 13(2), May.
    9. Aaberge, Rolf & Mogstad, Magne & Peragine, Vito, 2011. "Measuring long-term inequality of opportunity," Journal of Public Economics, Elsevier, vol. 95(3), pages 193-204.
    10. M. Fort & N. Schneeweis & R. Winter-Ebmer, 2011. "More Schooling, More Children: Compulsory Schooling Reforms and Fertility in Europe," Working Papers wp787, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Romina Boarini & Marc Fleurbaey & Fabrice Murtin & Paul Schreyer, 2022. "Well‐being during the Great Recession: new evidence from a measure of multi‐dimensional living standards with heterogeneous preferences," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 104-138, January.
    13. Rolf Aaberge & Ugo Colombino, 2018. "Structural Labour Supply Models and Microsimulation," International Journal of Microsimulation, International Microsimulation Association, vol. 11(1), pages 162-197.
    14. James P. Ziliak & Thomas J. Kniesner, 1999. "Estimating Life Cycle Labor Supply Tax Effects," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 326-359, April.
    15. Ugo Colombino & Nizamul Islam, 2020. "Combining microsimulation and optimization to identify optimal flexible tax-transfer rule," CHILD Working Papers Series 86 JEL Classification: H2, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    16. Rolf Aaberge & Ugo Colombino, 2005. "Designing Optimal Taxes With a Microeconometric Model of Household Labour Supply," Public Economics 0510013, University Library of Munich, Germany.
    17. Islam, Nizamul & Colombino, Ugo, 2018. "The case for NIT+FT in Europe. An empirical optimal taxation exercise," Economic Modelling, Elsevier, vol. 75(C), pages 38-69.
    18. Ole Boysen, 2019. "When does specification or aggregation across consumers matter for economic impact analysis models? An investigation into demand systems," Empirical Economics, Springer, vol. 56(1), pages 137-172, January.
    19. Auerbach, Alan J. & Hines, James Jr., 2002. "Taxation and economic efficiency," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 21, pages 1347-1421, Elsevier.
    20. Creedy, John & Sleeman, Catherine, 2006. "Carbon taxation, prices and welfare in New Zealand," Ecological Economics, Elsevier, vol. 57(3), pages 333-345, May.

    More about this item

    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:bla:ecorec:v:74:y:1998:i:227:p:373-383. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.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.