Welfare Eeects of Regional Income Taxes Results of an Interregional Cge Analysis for Germany
نویسنده
چکیده
This paper deals with the question, whether in a federal state the regions should obtain the right to levy regional income taxes. It is shown that a revenue sharing system in uences the optimal income tax rates and causes distortions. In a federal system with other distorting taxes, several states and a revenue sharing system the welfare e ects of regional income taxes can be positive or negative due to second best problems. Therefore the welfare e ects of regional income taxes are computed by means of an interregional computable general equilibrium analysis (CGE). The results suggest that in the German federal economy the sign of the welfare e ects of the introduction of regional income taxes is very sensitive to the particular institutional arrangements. JEL-Classi cations: C68, H21, H71, H77, R13, R15 Copyright by Springer-Verlag due to publication as: G. Hirte (1998), Welfare e ects of regional income taxes. Results of an interregional CGE analysis for Germany, Annals of Regional Science, 32, 201-219.
منابع مشابه
The Double Dividend Hypothesis for Iran Economy: Modeling Carbon Taxes with a CGE Model
The Double dividend hypothesis briefly demonstrates that by replacing different kinds of distortionary taxes with environmental ones, not only the lesser pollutants would be emitted (the first merit), but the more productivity and public welfare would be gained (the second one). Given the urgent need of reducing emissions in Iran, levying taxes on carbon, aimed at reducing carbon dioxide by 12 ...
متن کاملThe Double Dividend Hypothesis for Iran Economy: Modeling Carbon Taxes with a CGE Model
The Double dividend hypothesis briefly demonstrates that by replacing different kinds of distortionary taxes with environmental ones, not only the lesser pollutants would be emitted (the first merit), but the more productivity and public welfare would be gained (the second one). Given the urgent need of reducing emissions in Iran, levying taxes on carbon, aimed at reducing carbon dioxide by 12 ...
متن کاملThe Effect of Changing Interregional Relationships on Employment Changes: A Decomposition Analysis in Two-Regional Input- Output Model
According to the regional economic literature, interregional communication can play an important role in production, followed by production-related variables such as employment. For this reason, changing (strengthening or weakening) inter-regional communication can lead to changes in production and employment in the regions. Accordingly, the purpose of this study is to investigate the change of...
متن کاملCarbon and energy taxes in a small and open country
Malaysia, as a small and developing country, must reduce carbon emissions because the country is one of the top CO2-emitting countries in the ASEAN region. Therefore, the current study implements two environmental tax policies; carbon and energy taxes, in order to examine the impacts of these policies on the reduction of carbon emission in the whole of the economy by applying a compu...
متن کاملGlobal Trading of Carbon Dioxide Permits with Noncompliant Polluters
We study the optimal assignment of policy instruments at regional and interregional levels, for international carbon emissions trading with noncompliant polluters. We demonstrate that decentralization of regional emission quotas is socially optimal, when fines and interregional income transfers are implemented by intergovernmental authorities after regional policy making, because regional regul...
متن کامل