EconPapers    
Economics at your fingertips  
 

Taxation, Debt and Relative Prices in the Long Run: The Irish Experience

Vahagn Galstyan and Adnan Velic ()

Economic Papers from Trinity College Dublin, Economics Department

Abstract: This paper investigates the effects of public debt and distortionary labour taxation on the long-run behaviour of Irish relative non-traded goods prices. We highlight that higher public debt, acting through higher taxes, has an equivocal impact on the relative supply of non-traded goods and, correspondingly, relative prices. Our empirical analysis for Ireland suggests that taxes and public debt play significant roles in the long run, comoving negatively with the relative price of non-tradables. Accordingly, shifts in public debt and taxation bear implications for the country's international price competitiveness.

Keywords: labour taxation; distortionary; government spending; public debt; real exchange rate; relative non-traded prices (search for similar items in EconPapers)
JEL-codes: F00 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse and nep-pbe
Date: 2016-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.tcd.ie/Economics/TEP/2016/TEP1016.pdf

Related works:
Journal Article: Taxation, Debt and Relative Prices in the Long Run: The Irish Experience (2017) Downloads
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:tcd:tcduee:tep1016

Access Statistics for this paper

More papers in Economic Papers from Trinity College Dublin, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Colette Angelov ().

 
Page updated 2019-06-22
Handle: RePEc:tcd:tcduee:tep1016