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Sosiaalietuuksien rahoituksen alueelliset kuluttajahintavaikutukset


  • Rantala, Olavi


This study develops a model which can be used to evaluate the producer price effects and regional consumer price effects of alternative methods of financing social security, i.e. employers social security contributions and value added taxes. In the model system producer prices are determined by an input-output price model. National and regional consumer prices are determined by domestic producer prices, import prices and value added taxes. Simulations made by the model show e.g. that a decrease in the value added tax rate of food financed by a simultaneous increase in employers social security contributions leads to a fall in consumer price level and benefits mostly the elderly and pensioner households and the unemployed people, i.e. households with relatively large food expenditures. Regionally the largest consumer price fall takes place in Northern Finland. Consumer prices decrease least in Southern Finland.

Suggested Citation

  • Rantala, Olavi, 2008. "Sosiaalietuuksien rahoituksen alueelliset kuluttajahintavaikutukset," Discussion Papers 1125, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1125

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    producer prices; regional consumer prices;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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