Tervala, Juha; Ganelli, Giovanni - International Monetary Fund (IMF) - 2008
This paper focuses on the macroeconomic and budgetary impact of tax reforms in a New Keynesian two-country model. Our … results show that both income and consumption unilateral tax rate reductions do not constitute a "free lunch", in the sense … alternative (income-tax versus consumption-tax based) fiscal stimulus packages shows that consumption tax cuts imply a larger …