This paper develops a one-sector aggregate endogenous growth model with intertemporal preference dependence. The resultant model possesses the fundamental property of growth convergence, in the sense that countries with identical parameters regarding technology, preference, and government policy...

This paper assesses selected revenue, efficiency, and equity aspects of Chile’s major taxes, i.e., the income tax, the value-added tax (VAT), and excises. Chile’s present overall tax burden, at about 20 percent of GDP, is in line with that in its neighboring countries. Whether any change...

This paper studies the comparative effects between an exchange rate appreciation and the introduction of an export tax as alternative policy responses to address trade surplus concerns in a country with a fixed exchange rate regime facing a downward-sloping world demand curve for its exports. It...

This article argues that the validity of the increasingly fashionable policy advice—maximizing neutrality in taxation and addressing the distributive objective primarily through expenditure policy—is questionablebecause it ignores the revenue-raising aspect of progressive taxation....

This paper discusses important tax policy issues facing developing countries today. It views tax policy from both the macroeconomic perspective, which focuses on broad questions such as the level and composition of tax revenue, and the microeconomic perspective, which focuses on certain design...

This paper contains a proposal (referred to as the "modified reverse–charging" approach) to tax financial intermediation services under a VAT. At the heart of the proposal is the application of a reverse charge that shifts the collection of the VAT on deposit interest from depositors to banks,...

This paper analyzes anew the relationship between taxation and the household saving rate. On the basis of standard savings and tax revenue data from a sample of OECD countries, it provides compelling empirical evidence of a powerful impact of taxes on household savings. In particular, income...

This paper analyzes anew the relationship between taxation and the household saving rate. On the basis of standard savings and tax revenue data from a sample of OECD countries, it provides compelling empirical evidence of a powerful impact of taxes on household savings. In particular, income...