Taxation, Growth and Welfare: Dynamic Effects of Estonia´s 2000 Income Tax Act

Michael Funke and Holger Strulik

Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics

Abstract: This paper analyses the long run effects of the 2000 Income Tax Act in Estonia in a dynamic equilibrium model. It studiesthe impact of the shift from an imputation system to a system in which companies pay taxes only with respect to distributed profits.Balanced growth paths, transitional dynamics and welfare costs are computed. We show that the 2000 Estonian Income Tax Act leads to higher per capita income and investment but lower welfare. A sensitivity analysis shows that the results are rather robust.

Keywords: Growth; Welfare; Taxation; Tax Reform; Estonia (search for similar items in EconPapers)
JEL-codes: H25 H32 O41 O52 (search for similar items in EconPapers)
Date: 2003-04
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://gulliver.econ.uni-hamburg.de/IWWT/homepage/qmwps/qm805b.pdf (application/pdf)

Related works:
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)
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:ham:qmwops:20304

Access Statistics for this paper

More papers in Quantitative Macroeconomics Working Papers from Hamburg University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().