A switch from the current destination-based value-added taxation to an origin-based consumption tax will not be neutral in a world economy with international capital mobility and overlapping generations. This paper evaluates the macroeconomic and welfare effects of such a multilateral reform in...

This paper discusses the macroeconomic adjustment and the intergenerational and international incidence of a switch from the current destination-based value-added taxation to a origin-based VAT within a dynamic general equilibrium framework. Such a reform will affect the welfare levels of...

This paper provides empirical evidence on a novel complementarity between VAT and trade taxes. Downstream domestic firms require VAT receipts from importers to claim VAT on purchases, increasing incentives for honest reporting of imports. Trade gap, the difference between mirror and domestic...