Optimal fiscal policy in the presence of VAT evasion: the case of Bulgaria

Artikel

This paper explores the effects of fiscal policy in the presence of a VAT evasion channel, and then compares and contrasts two regimes - the exogenous vs. optimal policy case. To this end, a dynamic general-equilibrium model, calibrated to Bulgarian data (1999-2014), is augmented with a government sector. The main findings from the computational experiments performed in the paper are: (i) The optimal steady-state income tax rate is zero; (ii) The benevolent Ramsey planner provides the optimal amount of the valuable public services, which are now three times lower; (iii) The size of the grey sector is twice lower; (iv) optimal steady-state consumption tax needed to finance the optimal level of government spending is twice lower, as compared to the exogenous policy case.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Czech Journal of Economics and Finance ; ISSN: 0015-1920 ; Volume: 68 ; Year: 2018 ; Issue: 4 ; Pages: 399-414 ; Prague: Institute of Economic Studies, Faculty of Social Sciences, Charles University

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Computable and Other Applied General Equilibrium Models ; Informal Economy; Underground Economy ; Tax Evasion and Avoidance
• Thema: consumption tax ; income tax ; VAT evasion ; general equilibrium ; fiscal policy ; Bulgaria

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Vasilev, Aleksandar
• Ereignis: Veröffentlichung
• (wer): Institute of Economic Studies, Faculty of Social Sciences, Charles University ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Prague
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/174880
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ