The Impact of Goods and Services Tax on the Pattern of Canadian Consumer Spending and Saving

Emanuel Carvalho and Zeng Lian

The Journal of Economic Asymmetries, 2010, vol. 7, issue 1, 123-136

Abstract: This paper examines the effects of the Canadian Goods and Services Tax (GST) on the pattern of Canadian consumption and savings over a period of time. To test the change since the introduction of GST, we apply a version of the almost ideal demand system (AIDS) which allows individual demands to be conditional on shift parameters. The empirical results suggest important changes in the relationships since the introduction of GST in Canada. The appearance of GST in 1991 has significantly increased the share of savings and services, while the share of commodity goods has decreased.

Keywords: E62; H23; Canada; Saving; GST; AIDS (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1703494915302620
Full text for ScienceDirect subscribers only

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:eee:joecas:v:7:y:2010:i:1:p:123-136

DOI: 10.1016/j.jeca.2010.01.007

Access Statistics for this article

The Journal of Economic Asymmetries is currently edited by A.G. Malliaris

More articles in The Journal of Economic Asymmetries from Elsevier
Bibliographic data for series maintained by Catherine Liu ().