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cc-by-nc-nd, (c) Delalibera et al., 2023
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/204640

Tax Reforms and Network Effects [WP]

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This paper investigates the effects of a tax reform that eliminates tax rate heterogeneity and cumulative taxation using a general equilibrium model with multiple sectors with market power. Industries are connected through input-output linkages, and changes in taxation are not confined within industries. We calibrate the model to Brazil, a country with a highly distorted tax system. The revenue-neutral tax reform generates gains of 7.8% of GDP and 1.9% of welfare. Just eliminating VAT rate dispersion leads to a 5.9% increase in GDP. Due to propagation effects, in 10 sectors direct taxes increased but output and profits did not fall.

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DELALIBERA, Bruno r., FERREIRA, Pedro, GOMES, Diego, SOARES, Johann. Tax Reforms and Network Effects [WP]. _UB Economics – Working Papers_. 2023. Vol.  E23/456. [consulta: 23 de gener de 2026]. [Disponible a: https://hdl.handle.net/2445/204640]

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