Taxation, growth and welfare: Dynamic effects of Estonia's 2000 income tax act
Michael Funke and
Holger Strulik ()
No 10/2003, BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition
This paper analyses the long-run effects of Estonia s 2000 Income Tax Act with a dynamic general equilibrium model.Specifically, we consider the impact of the shift from an imputation system to one where companies only pay taxes on distributed profits.Balanced growth paths, transitional dynamics and welfare costs are computed. Our results indicate that the 2000 Income Tax Act leads to higher per capita income and investment, but lower welfare.A sensitivity analysis shows the results are rather robust. Keywords: growth, welfare, taxation, tax reform, Estonia JEL Classification: H25, H32, O41, O52
JEL-codes: H25 H32 O41 O52 (search for similar items in EconPapers)
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Published in Published in Published in Finnish Economic Papers vol 19, no 1 (2006), pp. 25-38
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Journal Article: Taxation, Growth and Welfare: Dynamic Effects of Estonia's 2000 Income Tax Act (2006)
Working Paper: Taxation, Growth and Welfare: Dynamic Effects of Estonia´s 2000 Income Tax Act (2006)
Working Paper: Taxation, growth and welfare: Dynamic effects of Estonia’s 2000 income tax act (2004)
Working Paper: Taxation, Growth and Welfare: Dynamic Effects of Estonia´s 2000 Income Tax Act (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:bof:bofitp:2003_010
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