{"title":"Indirect Tax Reform in Developing Countries: A Consumption-Neutral Approach","authors":"Takumi Haibara","doi":"10.1515/jgd-2016-0036","DOIUrl":null,"url":null,"abstract":"Abstract M. Shahe Emran and Joseph E. Stiglitz [Emran, M. S., and J. E. Stiglitz. 2005. “On Selective Indirect Tax Reform in Developing Countries.” Journal of Public Economics 89: 599–623] demonstrate that a revenue-neutral indirect tax reform, in which value-added tax (VAT) is increased to compensate for any revenue loss from tariff cuts, reduces welfare because of the strong substitutability in consumption between formal and informal commodities. This paper reconsiders this result, showing that indirect tax reform, if designed in a consumption-neutral fashion, improves welfare, even under strong substitutability, and discusses the revenue and distributional implications of the proposed reform.","PeriodicalId":38929,"journal":{"name":"Journal of Globalization and Development","volume":"8 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jgd-2016-0036","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Globalization and Development","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1515/jgd-2016-0036","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract M. Shahe Emran and Joseph E. Stiglitz [Emran, M. S., and J. E. Stiglitz. 2005. “On Selective Indirect Tax Reform in Developing Countries.” Journal of Public Economics 89: 599–623] demonstrate that a revenue-neutral indirect tax reform, in which value-added tax (VAT) is increased to compensate for any revenue loss from tariff cuts, reduces welfare because of the strong substitutability in consumption between formal and informal commodities. This paper reconsiders this result, showing that indirect tax reform, if designed in a consumption-neutral fashion, improves welfare, even under strong substitutability, and discusses the revenue and distributional implications of the proposed reform.
[摘要]M. Shahe Emran和Joseph E. Stiglitz [M. S. and J. E. Stiglitz] . 2005。“发展中国家的选择性间接税改革”。[公共经济学杂志][89:599-623]证明了收入中性的间接税改革，即增加增值税(VAT)以弥补关税削减带来的任何收入损失，由于正规商品和非正规商品之间的消费具有很强的可替代性，从而降低了福利。本文重新考虑了这一结果，表明间接税改革，如果以消费中性的方式设计，即使在强可替代性的情况下，也能改善福利，并讨论了拟议改革的收入和分配影响。
期刊介绍：
The Journal of Globalization and Development (JGD) publishes academic research and policy analysis on globalization, development, and in particular the complex interactions between them. The journal is dedicated to stimulating a creative dialogue between theoretical advances and rigorous empirical studies to push forward the frontiers of development analysis. It also seeks to combine innovative academic insights with the in-depth knowledge of practitioners to address important policy issues. JGD encourages diverse perspectives on all aspects of development and globalization, and attempts to integrate the best development research from across different fields with contributions from scholars in developing and developed countries. Topics: -Economic development- Financial investments- Development Aid- Development policies- Growth models- Sovereign debt
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