The Macroeconomic Effects of Individual Commodity Tax
This paper investigates the condition which raising individual consumption tax raises output and private consumption in general equilibrium model. In many of the neoclassical papers, the government expenditure decreases consumption because the government expenditure causes the negative wealth shock. On the other hand, the many empirical results are contrary. This contradiction is called "Fiscal Policy Puzzle". But, if the substitution effect of levying on additive ad-valorem commodity tax of a good is larger than the negative wealth effect of taxing and expanding government expenditure, individual tax finance can increase macroeconomic effect, in contrast to lump-sum and general commodity tax.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://ies.keio.ac.jp/old_project/old/gcoe-econbus/
More information through EDIRC
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.:
- Forni, Lorenzo & Monteforte, Libero & Sessa, Luca, 2009.
"The general equilibrium effects of fiscal policy: Estimates for the Euro area,"
Journal of Public Economics,
Elsevier, vol. 93(3-4), pages 559-585, April.
- Lorenzo Forni & Libero Monteforte & Luca Sessa, 2007. "The general equilibrium effects of fiscal policy: estimates for the euro area," Temi di discussione (Economic working papers) 652, Bank of Italy, Economic Research and International Relations Area.
- Luca Sessa & Libero Monteforte & Lorenzo Forni, 2007. "The general equilibrium effects of fiscal policy: estimates for the euro area," 2007 Meeting Papers 352, Society for Economic Dynamics.
When requesting a correction, please mention this item's handle: RePEc:kei:dpaper:2011-003. 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: (Global COE Program Office)The email address of this maintainer does not seem to be valid anymore. Please ask Global COE Program Office to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.