 FH-ORANI: A FISCAL ORANI WITH HORRIDGE EXTENSIONPhilippa Dee No 295207, Impact Project Archive from Impact Research Centre, University of Melbourne Abstract: This paper describes FH-ORANI, an extended version of the ORANI model that includes a full accounting of all government revenues and expenditures, consolidated across commonwealth, state and local levels of government. A feature of the revenue side is that provision is made for progressivity in direct taxes on labour income. On the expenditure side, spending on unemployment benefits and other kinds of transfer payment depends explicitly on the number of people employed, unemployed or not in the workforce. A theory of labour supply is included to explain the number of people in each of these emplcyment status categories. The income-expenditure link is closed with an aggregate consumption function relating household consumption to disposable income, net of direct taxes and net of the share of capital rentals accruing to foreigners. Finally, ORANI's real rate of return, which guides both the allocation of investment across industries in the short run and the level of industry capital stocks in the long run, is redefined to be net of taxation as well as depreciation. With these features, the FH-ORANI extensions represent not just an accounting exercise, but also a significant enhancement of ORANI's theoretical structure. Keywords: Public Economics; Research Methods/Statistical Methods (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:ircipa:295207 Access Statistics for this paper More papers in Impact Project Archive from Impact Research Centre, University of Melbourne |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.