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3 edition of Simulating the dynamic macroeconomic and microeconomic effects of the FairTax found in the catalog.

Simulating the dynamic macroeconomic and microeconomic effects of the FairTax

Laurence J. Kotlikoff

Simulating the dynamic macroeconomic and microeconomic effects of the FairTax

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  • 29 Currently reading

Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

    Subjects:
  • Progressive taxation -- Econometric models,
  • Taxation -- United States

  • Edition Notes

    StatementLaurence J. Kotlikoff, Sabine Jokisch.
    SeriesNBER working paper series -- working paper 11858., Working paper series (National Bureau of Economic Research) -- working paper no. 11858.
    ContributionsJokisch, Sabine., National Bureau of Economic Research.
    The Physical Object
    Pagination39 p. ;
    Number of Pages39
    ID Numbers
    Open LibraryOL17628622M
    OCLC/WorldCa62764154

    Consider the following centrally-planned model with labor yt = ct+it ∆kt+1 = it−δkt y t= A[αk 1− 1 γ+(1−α)n 1−] 1 1−1 γ where the objective is to maximize Vt= X∞ s=0 βs[lnc t+s+ϕlnlt+s],β= 1 1+θ where yt is output, ct is consumption, it is investment, kt is the capital stock, nt is employment and lt is leisure (lt+nt=1). (a) Derive expressions from which the long File Size: KB. Title: The Macroeconomic Effects of Distortionary Taxation Author: Ellen R. McGrattan Created Date: 2/24/ PM. When a government imposes tax on particular goods, this action would have effects on equilibrium price and quantity. Basically, a tax is money collected by a government from businesses or individuals directly or indirectly against services provided to the community.


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Simulating the dynamic macroeconomic and microeconomic effects of the FairTax by Laurence J. Kotlikoff Download PDF EPUB FB2

Jokisch, Sabine & Kotlikoff, Laurence J., "Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax," National Tax Journal, National Tax Association;National Tax Journal, vol. 60(2), pagesJune.

Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax Article (PDF Available) in National tax journal 60(2) January with 27 Reads How we measure 'reads'. Downloadable (with restrictions). America's aging coupled with high and growing old–age health and pension benefits augers for much higher payroll taxes, with damaging effects on the U.S.

economy. This prognosis is supported by our analysis of a detailed dynamic life–cycle general equilibrium model. The FairTax, which proposes to replace the federal payroll, personal income, corporate.

Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax Sabine Jokisch, Laurence J. Kotlikoff. NBER Working Paper No. Issued in December NBER Program(s):Public Economics.

Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax Sabine Jokisch and Laurence J. Kotlikoff NBER Working Paper No. December JEL No. H2 ABSTRACT America's aging coupled with high and growing old age health and pension benefits augers. Get this from a library. Simulating the dynamic macroeconomic and microeconomic effects of the FairTax.

[Sabine Jokisch; Laurence J Kotlikoff; National Bureau of Economic Research.] -- Abstract: America's aging coupled with high and growing old age health and pension benefits augers for much higher payroll taxes, with potentially damaging effects on the U.S.

economy. Simulating the Dynamic Macroeconomic and Microeconomic Effects of the Fairtax NBER Working Paper No. w 39 Pages Posted: 7 Nov Last revised: 1 Aug Cited by: This paper uses a new, large-scale, dynamic life-cycle simulation model to compare the welfare and macroeconomic effects of five fundamental alternatives to the U.S.

federal income tax: a. The Fair Tax Act (H.R. 25/S. ) is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax, to be levied once at the.

The FairTax legislation would apply a 23% federal retail sales tax on the total transaction value of new retail goods and services purchases; in other words, consumers pay to the government 23 cents of every dollar spent (sometimes called tax-inclusive — as income taxes are calculated).

The assessed tax rate is 30% if the FairTax is added to the pre-tax price of a good like traditional U.S. All issues of Macroeconomic Dynamics - William A.

Barnett. We use cookies to distinguish you from other users and to provide you with a better experience on our websites. FairTax was a flat tax proposal inand in the United States that includes complete dismantling of the Internal Revenue Service.

The proposal would replace all federal income taxes (including the alternative minimum tax, corporate income taxes, and capital gains taxes), payroll taxes (including Social Security and Medicare taxes), gift taxes, and estate taxes with a single.

By replacing the current income tax with a national sales tax, the FairTax proposal would end the double taxation of saving inherent in the existing tax code and, by doing so, raise output, employment, investment and capital stock relative to the benchmark economy.

While these positive effects would be felt almost immediately, the FairTax is very much an investment in the by: 4. This book is an excellent treatment of Macroeconomic Theory at the PhD Level. It is an advanced graduate textbook of macroeconomic theory and dynamic stochastic general equilibrium models.

This book is used among many researchers as the first reference for doing applied and theoretical research with DSGE by: 9. An advanced treatment of modern macroeconomics, presented through a sequence of dynamic equilibrium models, with discussion of the implications for monetary and fiscal policy.

This textbook offers an advanced treatment of modern macroeconomics, presented through a sequence of dynamic general equilibrium models based on intertemporal optimization on the part of economic agents.

Taxing Sales Under the FairTax: What Rate Works. (article in Tax Analysts discussing issues concerning the FairTax rate) Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax. Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation.

Grading the President’s Tax Reform Panel Author: Gerald Prante. This book is a companion volume to Dynamic Macroeconomic Theory by Thomas J. Sargent. It provides scrimmages in dynamic macroeconomic theory--precisely the kind of drills that people will need in order to learn the techniques of dynamic programming and its applications to economics.

By doing these exercises, the reader can acquire the ability Cited by: Simulating the dynamic macroeconomic and microeconomic effects of the FairTax. The article is very positive about the potential implementation of a FairTax system.

To be fair, the article was written in - well before the economic decline - but the simulations are done on a long term basis, so they should still be considered viable.

“Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax.” NBER Working Paper No. Cambridge, MA: National Bureau of Economic : Mary E. Burfisher. See, for instance, Hans Fehr, Sabine Jokisch, Ashwin Kambhampati, and Laurence J.

Kotlikoff, “Simulating the Elimination of the U.S. Corporate Income. the effects of macro phenomena on its microeconomic underpin-nings.

Similarly, much of trade theory does not recognize the aggregate feedback effects of micro-level adjustments over time. 2 This paper contributes to bridging the gap between interna-tional macroeconomics and File Size: KB.

Jokisch, Sabine and Laurence J. Kotlikoff, “Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax,” National Tax Journal, June Click here. The macroeconomic effects of taxes are important because they can affect people’s well-being, although those effects do not always directly correspond to the effects on measured economic output.

Macroeconomic changes also influence the amount of revenue a tax system raises, through so-called dynamic effects. Kotlikoff Study: 23% FairTax = Revenue Neutral.

October 2, Filed under: Education. Thanks to (FairTax critic) Hayden Kepner for pointing out that Boston University Economics Professor Laurence Kotlikoff’s much-anticipated study of the necessary revenue-neutral rate for the FairTax has been published and released.

economic output due to disincentive and other effects. A phase-out is a reduction in value of a tax provision as a taxpayer’s income increases until it is eliminated or zeroed out.

Fiscal Policy and Microeconomic Effects 1. ECON4Fiscal Policy & Micro/Macro Effects Aquinas College Economics Department 2. Fiscal Policy• Manipulation of – Public Spending – Taxation – Borrowing• To achieve macroeconomic objectives• Fiscal Policy is going to have impacts on Individuals and Business Aquinas College Economics.

Endorsements. A clear, self contained, introduction to the structure of macroeconomic models and the tools of macroeconomics. Next time my students ask me how to setup a model for the dynamic effects of fiscal policy in a two-sector economy, or how they should think about introducing uncertainty in an endogenous growth model, I will tell them to start with Turnovsky's book.

GFM is a multi-country, dynamic, general equilibrium model developed specifically to analyze the macroeconomic effects of various fiscal policies. As such, it is able to offer a qualitative and quantitative assessment of alternative reform proposals, albeit unable to capture some of the more detailed, microeconomic, differences between the various.

The FairTax is a tax reform proposal for the federal government of the United States that would replace all federal taxes on personal and corporate income [1] with a single broad national consumption tax on retail sales. The Fair Tax Act (H.R. 25/S. 13) would apply a tax once at the point of purchase on all new goods and services for personal consumption.

The proposal also calls for a monthly. A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication data Dynamic macroeconomic analysis: theory and policy in general equilibrium / edited by Sumru Altug, Jagjit S.

Chadha, Charles Nolan. cm ISBN 0 3 – ISBN 0 8 (pb.) 1. Macroeconomics. One reason that economists use microeconomics as the basis of macroeconomic analysis is.

that all choices are made by individuals and firms. Microeconomics focuses on. decisions made by individual households and firms. The impact of the national debt on the economy's unemployment is an example of.

Without macroeconomic effects With macroeconomic effects Increase in federal debt (end of period) Without macroeconomic effects With macroeconomic effects GDP (last year of period) Without macroeconomic effects With macroeconomic effects Increase in ratio of federal debt to GDP (end of period File Size: KB.

Solution Methods for Microeconomic Dynamic Stochastic Optimization Problems March4, l 1 Abstract These notes describe tools for solving microeconomic dynamic stochastic optimization problems, and show how to use those tools for efficiently estimating a standard life cycle consumption/saving model using microeconomic data.

A Macroeconomic Analysis of the FairTax Proposal Arduin, Laffer & Moore Econometrics (GA-7).4 The FairTax addresses the ills of the current tax code by simplifying the tax structure, removing the tax on savings and investment, and lowering the effective marginal tax rates.

Microeconomics versus Macroeconomics Practice: For each of the following, determine whether the topic would be considered part of macroeconomics or microeconomics.

Microeconomic and macroeconomic models ought to be consistent with each other, but the microeconomic foundations need to have realistic assumptions about the ability of.

Nonlinearities can also cause shocks to critical sectors to have disproportionate macroeconomic effects, almost tripling the estimated impact of the s oil shocks on world aggregate output.

Finally, in a long-run growth context, nonlinearities, which underpin Baumol's cost disease, account for a 20 percentage point reduction in aggregate TFP Cited by: Macroeconomics and Microeconomics Differences. Macroeconomicsis a study that deals with the factors that are impacting the local, regional, national, or overall economy and it takes the averages and aggregates of the overall economy whereas Microeconomics is a narrower concept and it is concerned with the decision making of single economic variables and it only interprets the tiny components.

Which is a microeconomic question rather than a macroeconomic question. The view that the government should take an active role in the Macroeconomic dates to: The Great Depression.

In a typical business cycle, the trough is immediately followed by the: actively try to mitigate the effects of recessions by using fiscal and monetary policies. Microeconomic model of the personal income distribution and evolution The following section is devoted to the development of a microeconomic and macroeconomic model explaining behavior of the personal income distribution in relation to some measured macroeconomic and demographic parameters.

A standard procedure is used. The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks by Christina D.

Romer and David H. Romer. Published in volumeissue 3, pages of American Economic Review, JuneAbstract: This paper investigates the impact of tax changes on economic activi.( views) Notes on Dynamic Methods in Macroeconomics by Nicola Pavoni - UCL, These notes are targeted to advanced Master and Ph.D.

students in economics. The material contained in these notes only assumes the reader to know basic math and static optimization, and a basic graduate knowledge of economics.

( views) Real Macroeconomic.ADVERTISEMENTS: Some supply-side policies seek to increase aggregate supply by focusing on particular industries. For example, a privatization programme may involve the selling of one or two industries.

In this way, supply-side policies are also having an impact on the micro economy. There are a range of policy measures which are specifically microeconomic in nature [ ].