An Evaluation of the Revenue side as a source of fiscal consolidation in high debt economies

Ritwik Banerjee

MPRA Paper from University Library of Munich, Germany

Abstract: Unsustainable levels of debt for some European economies is causing enormous strain in the Euro area. How to tide over the debt crisis seems to be the most important objective the European policy makers are currently facing. We use a dynamic general equilibrium closed economy model to compute the dynamic Laffer Curves for Portugal, Ireland, Greece and Spain for different class of taxes. We conclude that there exists scope for considerable revenue generation by raising certain class of taxes. Thus revenue generation, along with fiscal consolidation holds key for debt reduction.

Keywords: fiscal consolidation; dynamic laffer curve; tax revenue; fiscal policy (search for similar items in EconPapers)
JEL-codes: E61 E62 O52 (search for similar items in EconPapers)
Date: 2012-04-07
New Economics Papers: this item is included in nep-dge, nep-eec, nep-mac and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:37956

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