The Effects of the Value-Added Tax on Revenue and Inequality

Kaisa Alavuotunki, Mika Haapanen, Jukka Olavi Pirttilä

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

Kuvaus

This paper examines the impact of the introduction of the value-added tax on inequality and government revenues using newly released macro data. We present both conventional country fixed effect regressions and instrumental variable analyses, where VAT adoption is instrumented using the previous values of neighbouring countries’ VAT systems as an instrument. The results reveal – in contrast to earlier work – that the revenue consequences of the VAT have not been positive. The results indicate that income-based inequality has increased due to the VAT adoption, whereas consumption inequality has remained unaffected.
Alkuperäiskielienglanti
LehtiJournal of Development Studies
Vuosikerta55
Numero4
Sivut490-508
Sivumäärä19
ISSN0022-0388
DOI - pysyväislinkit
TilaJulkaistu - 3 huhtikuuta 2019
OKM-julkaisutyyppiA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä, vertaisarvioitu

Tieteenalat

  • 511 Kansantaloustiede

Lainaa tätä

Alavuotunki, Kaisa ; Haapanen, Mika ; Pirttilä, Jukka Olavi. / The Effects of the Value-Added Tax on Revenue and Inequality. Julkaisussa: Journal of Development Studies. 2019 ; Vuosikerta 55, Nro 4. Sivut 490-508.
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The Effects of the Value-Added Tax on Revenue and Inequality. / Alavuotunki, Kaisa; Haapanen, Mika; Pirttilä, Jukka Olavi.

julkaisussa: Journal of Development Studies, Vuosikerta 55, Nro 4, 03.04.2019, s. 490-508.

Tutkimustuotos: ArtikkelijulkaisuArtikkeliTieteellinenvertaisarvioitu

TY - JOUR

T1 - The Effects of the Value-Added Tax on Revenue and Inequality

AU - Alavuotunki, Kaisa

AU - Haapanen, Mika

AU - Pirttilä, Jukka Olavi

PY - 2019/4/3

Y1 - 2019/4/3

N2 - This paper examines the impact of the introduction of the value-added tax on inequality and government revenues using newly released macro data. We present both conventional country fixed effect regressions and instrumental variable analyses, where VAT adoption is instrumented using the previous values of neighbouring countries’ VAT systems as an instrument. The results reveal – in contrast to earlier work – that the revenue consequences of the VAT have not been positive. The results indicate that income-based inequality has increased due to the VAT adoption, whereas consumption inequality has remained unaffected.

AB - This paper examines the impact of the introduction of the value-added tax on inequality and government revenues using newly released macro data. We present both conventional country fixed effect regressions and instrumental variable analyses, where VAT adoption is instrumented using the previous values of neighbouring countries’ VAT systems as an instrument. The results reveal – in contrast to earlier work – that the revenue consequences of the VAT have not been positive. The results indicate that income-based inequality has increased due to the VAT adoption, whereas consumption inequality has remained unaffected.

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KW - income inequality

KW - globalization

KW - panel

U2 - 10.1080/00220388.2017.1400015

DO - 10.1080/00220388.2017.1400015

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