Inflation, Unemployment and Indirect Taxation

Samuel G B Henry and Elias Karakitsos

Bulletin of Economic Research, 1987, vol. 39, issue 1, 29-47

Abstract: Henry, Samuel G. B. and Karakitsos, Elias A cut in indirect tax reduces market prices, and lowers inflation temporarily while increasing real disposable income and employment. A small analytical macroeconomic model is developed to analyze the transmission of indirect tax changes incorporating two features of the National Institute econometric model: an inflation loss term in holding liquid assets, and real wage rigidity. Associated problems of internal and external financing of tax changes are further analyzed using multi-target and multi-instrument optimal control with the full econometric model. Copyright 1987 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1987
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:buecrs:v:39:y:1987:i:1:p:29-47

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0307-3378

Access Statistics for this article

More articles in Bulletin of Economic Research from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().