UID:
edoccha_9958124471402883
Format:
1 online resource (38 p.)
ISBN:
1-4623-3665-5
,
1-4527-2690-6
,
1-283-51738-8
,
1-4519-1200-5
,
9786613829832
Series Statement:
IMF working paper ; WP/07/183
Content:
Has the VAT proved, as its proponents claim, an especially effective form of taxation? To address this, this paper first shows that a tax innovation-such as the introduction of a VAT- reduces the marginal cost of public funds if and only if it also leads an optimizing government to increase the tax ratio. This leads to the estimation, on a large panel, of a system of equations describing the probability of VAT adoption and the revenue impact of the VAT. The sign of the revenue impact is generally ambiguous, but most countries that have adopted a VAT seem to have gained a more effective tax instrument in doing so.
Note:
"July 2007".
,
Contents; I. Introduction; II. Modeling the Impact and Take-Up of the VAT; A. Background; B. The Revenue Impact of a Tax Innovation; C. The Decision to Adopt a VAT; D. Limitations; III. Empirical Specification; A. The Revenue Equation; B. The Adoption Equation; C. Logical Consistency and Cross Equation Restrictions; D. Estimation; E. Data and Variables; Figure; 1. The Number of Countries with a VAT; IV. Results; A. Adoption of the VAT; Tables; 1. Estimates of the Adoption Equation; B. Revenue Impact of the VAT; 2. Revenue Equation; V. Predicting the Revenue Gains from a VAT
,
English
Additional Edition:
ISBN 1-4518-6747-6
Language:
English
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