International institutions are recommending policies aimed at shift- ing the tax burden from labour and business incomes to less growth- detrimental forms of taxation, such as consumption taxes. However, de- spite the expected positive macroeconomic effects, a criticism about in- creasing the...

Empirical cross-country evidence suggests that countries position themselves along a sort of Market Regulation (MR)-Social Expenditure (SE) trade-off “line”. Theoretically, it is clear that there exists a certain degree of substitutability between SE and MR, since both can provide a cushion...

This paper assesses the effects of the changes of the Value Added Tax (VAT) rates in Italy for the period 1988-1997, questioning their overall redistributive impact compared with an equal-revenue proportional tax rate. By using the theory of marginal tax reforms and the AWARETAX microsimulation...

The entrance of Italy in the Euro area in 2001 has given rise to a wide debate about the perception of inflation on households’ well-being. However, most of the debate has involved the measurement of the “correct†consumer price index at national level. Much less analysis has...