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La TVA sociale : bonne ou mauvaise id e ?

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Listed:
  • Patrick F ve
  • Julien Matheron
  • Jean-Guillaume Sahuc

Abstract

The quantitative and dynamic consequence of a social VAT reform, i.e. a fiscal reform consisting in substituting VAT for social contributions, is assessed using two general equilibrium models. The first one is a Walrasian model with no other frictions than distortionary taxation of labor and capital incomes and consumption. The second one introduces in addition matching frictions in the labor market. Two alternative financing schemes are considered for the practical details of implementing the social VAT. In all cases, the fiscal reform turns out to generate a small, positive long--run effect on aggregate variables and yields a modest welfare gain. In the no--friction model, this welfare gain is substantially reduced when the reform is pre--announced six quarters prior to implementation. The effect of such a pre-announced reform are smaller when labor market frictions are taken into account.

Suggested Citation

  • Patrick F ve & Julien Matheron & Jean-Guillaume Sahuc, 2009. "La TVA sociale : bonne ou mauvaise id e ?," Working papers 244, Banque de France.
    • Handle: RePEc:bfr:banfra:244
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    Cited by:

    1. Nukic, Senada, 2014. "Fiscal Consolidation and Employment Loss," MPRA Paper 60224, University Library of Munich, Germany.
    2. Font, Barbara Castelletti & Clerc, Pierrick & Lemoine, Matthieu, 2018. "Should euro area countries cut taxes on labour or capital in order to boost their growth?," Economic Modelling, Elsevier, vol. 71(C), pages 279-288.
    3. Fanny Henriet, Nicolas Maggiar, and Katheline Schubert, 2014. "A Stylized Applied Energy-Economy Model for France," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    4. Fanny Henriet & Nicolas Maggiar & Katheline Schubert, 2016. "La France peut-elle atteindre l’objectif du Facteur 4 ? Une évaluation à l’aide d’un modèle stylisé énergie-économie," Economie & Prévision, La Documentation Française, vol. 0(1), pages 1-21.
    5. Patrick F ve & Julien Matheron & Sahuc,J-G., 2013. "Strict Fiscal Rules and Macroeconomic Stability: The Case of Social VAT," Working papers 439, Banque de France.

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    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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