Analyzes the Effects of Tax policy Reform on Macroeconomic Variables in Iran: Cash in Advance Approach (CIA)

izadkhasti, Hojjat

doi:10.29252/jemr.7.28.191

Volume 8, Issue 28 (7-2017) jemr 2017, 8(28): 191-226 | Back to browse issues page

‎ 10.29252/jemr.7.28.191

‎ 20.1001.1.22286454.1396.7.28.5.9

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izadkhasti H. Analyzes the Effects of Tax policy Reform on Macroeconomic Variables in Iran: Cash in Advance Approach (CIA). jemr 2017; 8 (28) :191-226
URL: http://jemr.khu.ac.ir/article-1-1449-en.html

Analyzes the Effects of Tax policy Reform on Macroeconomic Variables in Iran: Cash in Advance Approach (CIA)

Hojjat Izadkhasti ^*

Shahid Beheshti University , h_izadkhastiir@sbu.ac.

Abstract: (7211 Views)

An efficient monetary and tax system plays an important role in the proper performance of the economic system, and can effect on motivation of labor, consumer, savings and investment behavior. A theory of monetary and tax reform is movement of the income tax system and inflation tax to the system of consumption tax, that can increase the tendency to savings, investment and capital accumulation. In this study, with public finance approach and using dynamic general equilibrium model with cash in advance restriction on consumption and investment, analysis the effects of reform inflation tax and consumption tax rates during the equilibrium growth path. Then, with put the amount of parameters in the steady state, sensitivity analysis of the variables to the reform of inflation tax and consumption tax rates will be discussed in the various reform program. The results of calibration and sensitivity analysis in various scenarios indicates that the reduce of inflation tax and increase the consumption tax rate, along with reducing the size of government and reduce liquidity constraints on investment, has increased capital accumulation, production, consumption, real money balances per capita and the welfare in the steady state.

Keywords: Growth Model, Cash in Advance, Inflation Tax, Consumption Tax, Welfare Cost

Full-Text [PDF 3005 kb] (3662 Downloads)

Type of Study: Applicable | Subject: بخش عمومی
Received: 2016/07/8 | Accepted: 2017/06/14 | Published: 2017/09/17

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