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. 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.
    2. Slesnick, Daniel T., 1990. "Inflation, relative price variation, and inequality," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 135-151.
    3. 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.
    4. 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.
    5. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
    6. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, October.
    7. 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.
    8. 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.
    9. Kay, J. A., 1980. "The deadweight loss from a tax system," Journal of Public Economics, Elsevier, vol. 13(1), pages 111-119, February.
    10. Muellbauer, John, 1974. "Prices and Inequality: The United Kingdom Experience," Economic Journal, Royal Economic Society, vol. 84(333), pages 32-55, March.
    11. 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.
    12. 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)

    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Rolf Aaberge & Magne Mogstad, 2009. "On the Measurement of Long-Term Income Inequality and Income Mobility," ICER Working Papers 09-2009, ICER - International Centre for Economic Research.
    6. 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.
    7. 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.
    8. Aaberge, Rolf & Mogstad, Magne & Peragine, Vito, 2011. "Measuring long-term inequality of opportunity," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 193-204, April.
    9. M. Fleurbaey., 2012. "Beyond GDP: The Quest for a Measure of Social Welfare," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 2.
    10. 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.
    11. 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.
    12. Rolf Aaberge & Ugo Colombino, 2005. "Designing Optimal Taxes With a Microeconometric Model of Household Labour Supply," Public Economics 0510013, University Library of Munich, Germany.
    13. Moz-Christofoletti, Maria Alice & Pereda, Paula Carvalho, 2021. "Winners and losers: the distributional impacts of a carbon tax in Brazil," Ecological Economics, Elsevier, vol. 183(C).
    14. 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.
    15. Rolf Aaberge & Ugo Colombino, 2018. "Structural Labour Supply Models and Microsimulation," International Journal of Microsimulation, International Microsimulation Association, vol. 11(1), pages 162-197.
    16. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis, in: Cathal O’Donoghue (ed.), Handbook of Microsimulation Modelling, volume 127, pages 167-221, Emerald Publishing Ltd.
    17. Hausman, Jerry A., 1985. "Taxes and labor supply," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 4, pages 213-263, Elsevier.
    18. 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.
    19. Colombino, Ugo & Islam, Nizamul, 2020. "Optimal Tax-Transfer Rules under Equilibrium and New Labour Demand Scenarios," IZA Discussion Papers 13541, Institute of Labor Economics (IZA).
    20. Kono, Tatsuhito & Kishi, Akio, 2018. "What is an appropriate welfare measure for efficiency of local public policies inducing migration?," Mathematical Social Sciences, Elsevier, vol. 91(C), pages 25-35.

    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/esausea.html .

    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 hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.