The Effects of Capital Taxation Using Dynamic Macro-Econometric Model of the Japanese Economy ―Simulation Analysis Including Households without Financial Assets―

Daisuke Ishikawa, Dun-Yen Wang and Masahiko Nakazawa
Additional contact information
Daisuke Ishikawa: Former Senior Economist, Policy Research Institute, Ministry of Finance
Dun-Yen Wang: Researcher at the Research Center for Advanced Policy Studies, Institute of Economic Research, Kyoto University
Masahiko Nakazawa: Visiting Scholar, Policy Research Institute, Ministry of Finance

Public Policy Review, 2018, vol. 14, issue 4, 585-612

Abstract: In order to maximize social welfare, it is important to ensure stable economic growth by revitalizing private-sector. From this viewpoint, it is necessary to design capital taxation such that it avoids undue distortions in the corporate sector as much as possible. On the other hand, as the government’s fiscal situation is deteriorating, reform on tax system must also be consistent with fiscal sustainability. With these perspectives in mind, we developed a dynamic macro-econometric model (dynamic CGE model) that contributes to the analysis of capital taxation, in reference to Radulescu (2007) and Radulescu and Stimmelmayr (2010), while including households without financial assets. In this paper, we report the results of various numerical simulation analyses, maintaining neutrality of tax revenues.

Keywords: dynamic macro-econometric model; capital taxation; liquidity-constrained consumers; tax revenue neutrality (search for similar items in EconPapers)
JEL-codes: C54 H21 H25 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mof.go.jp/english/pri/publication/pp_review/ppr14_04_04.pdf (application/pdf)

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:mof:journl:ppr14_04_04

Access Statistics for this article

More articles in Public Policy Review from Policy Research Institute, Ministry of Finance Japan Contact information at EDIRC.
Bibliographic data for series maintained by Policy Research Institute ().