A progressive consumption tax: an important instrument for stabilizing business cycles, or just an exotic idea?

Aleksandar Vasilev

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: We introduce progressive consumption taxation into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2016). We investigate the quantitative importance of the presence of of progressive taxation of consumption expenditures for the stabilization of cyclical fluctuations in Bulgaria. We find the quantitative effect of such a tax to be very small, and thus not important for either business cycle stabilization, or public finance issues.

Keywords: business cycles; progressive consumption taxation; Bulgaria (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-bec, nep-dge, nep-mac and nep-pub
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https://www.econstor.eu/bitstream/10419/187772/1/progr_sales_tax2.pdf (application/pdf)

Related works:
Journal Article: A Progressive Consumption Tax: An Important Instrument for Stabilizing Business Cycles, or Just an Exotic Idea? (2022)
Journal Article: A progressive consumption tax: an important instrument for stabilizing business cycles, or just an exotic idea? (2019)
Working Paper: A Progressive Consumption Tax - an Important Instrument for Stabilizing Business Cycles, or just an Exotic Idea? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:187772

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