Publication:
Macroeconomic and Distributive Effects of Increasing Taxes in Spain

dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorFuster, Luisa
dc.contributor.funderAgencia Estatal de Investigación (España)es
dc.date.accessioned2023-01-10T15:08:23Z
dc.date.available2023-01-10T15:08:23Z
dc.date.issued2022-11-09
dc.description.abstractI assess the macroeconomic and redistributive effects of tax reforms aimed at increasing tax revenue in Spain. To this end, I develop a theory of entrepreneurship that mimics key facts on the wealth and income distribution in Spain. I find two reforms that raise fiscal pressure in Spain to the average value among countries in the Euro area. The first reform involves doubling the average effective tax rate on labor and business income for all individuals whose income is above a threshold level. I find that this reform reduces the inequality in after-tax income, wealth, and consumption. However, it implies a substantial GDP reduction. The second reform increases the flat tax rate on consumption by fifteen percentage points. While this reform does not reduce long-run output, it does not decrease household inequality. All in all, the desirability of the two reforms depends on the government’s preferences for reducing inequality at the expense of aggregate output losses.en
dc.description.sponsorshipI am very grateful to the ministry of Science and Innovation of Spain for financial support (Grant PID2019-107614GB-I00).en
dc.identifier.bibliographicCitationFuster, L. (2022). Macroeconomic and distributive effects of increasing taxes in Spain. SERIEs, 13 (4), pp. 613-648.es
dc.identifier.doihttps://doi.org/10.1007/s13209-022-00269-5
dc.identifier.issn1869-4187
dc.identifier.publicationfirstpage613es
dc.identifier.publicationissue4es
dc.identifier.publicationlastpage648es
dc.identifier.publicationtitleSeries-Journal of the Spanish Economic Associationen
dc.identifier.publicationvolume13es
dc.identifier.urihttps://hdl.handle.net/10016/36245
dc.identifier.uxxiAR/0000031680
dc.language.isoengen
dc.publisherSpringer Openen
dc.relation.projectIDGobierno de España. PID2019-107614GB-I00es
dc.rights© The Author(s) 2022en
dc.rightsAtribución 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.jelE2
dc.subject.jelE2
dc.subject.jelE2
dc.subject.jelE2
dc.subject.jelE62
dc.subject.jelH24
dc.subject.jelH24
dc.subject.jelH25
dc.subject.jelH25
dc.subject.jelH30
dc.subject.jelH30
dc.subject.otherTaxationen
dc.subject.otherFiscal pressureen
dc.subject.otherTax revenueen
dc.subject.otherEntrepreneurshipen
dc.subject.otherLabor supplyen
dc.subject.otherInequalityen
dc.titleMacroeconomic and Distributive Effects of Increasing Taxes in Spainen
dc.typeresearch article*
dc.type.hasVersionVoR*
dspace.entity.typePublication
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