International Vat Harmonization: Economic Effects

This paper highlights key macroeconomic issues related to VAT harmonization. A model is developed which emphasizes the effects of changes in the time profile of various taxes on international behavior. Dynamic simulations reveal that the macroeconomic and welfare implications of VAT harmonization, i...

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Bibliographic Details
Main Author: Frenkel, Jacob A. (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1991
Series:IMF Working Papers Working Paper No. 91/22
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Summary:This paper highlights key macroeconomic issues related to VAT harmonization. A model is developed which emphasizes the effects of changes in the time profile of various taxes on international behavior. Dynamic simulations reveal that the macroeconomic and welfare implications of VAT harmonization, including conflicts of interest, depend critically on the tax system and the degree of substitution governing temporal and intertemporal allocations. We also demonstrate that the effects of revenue-neutral tax conversions between income and consumption tax systems undertaken by a single country depend critically on international differences in behavior
Physical Description:1 Online-Ressource (48 p)
ISBN:1451921179
9781451921175

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