A Progressive Consumption Tax: An Important Instrument for Stabilizing Business Cycles, or Just an Exotic Idea?

Artikel

We introduce progressive consumption taxation into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999–2016). We investigate the quantitative importance of the presence of progressive taxation of consumption expenditures for the stabilization of cyclical fluctuations in Bulgaria. We find the quantitative effect of such a tax to be very small, and thus not important for either business cycle stabilization or public finance issues.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Problems of Economic Transition ; ISSN: 1557-931X ; Volume: 63 ; Year: 2022 ; Issue: 10-12 ; Pages: 576-588 ; London: Taylor & Francis

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Business Fluctuations; Cycles
• Subject: business cycles ; progressive consumption taxation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vasilev, Aleksandar
• Event: Veröffentlichung
• (who): Taylor & Francis ; ZBW - Leibniz Information Centre for Economics
• (where): London
• (when): 2022

Further information

• DOI: https://www.tandfonline.com/doi/full/10.1080/10611991.2022.2153507
• Handle: http://hdl.handle.net/10419/273312
• Last update: 10.03.2025, 11:43 AM CET