The changed circumstances of the EU after 1992 have a given rise to concern about possible indirect tax competition and related economic distortions. This paper develops a model, incorporating both a production and a retail sector, to examine the effects of different VAT regimes. This model is...

During the 2010-2019 decade, consumption taxes have risen in the vast majority of the EU Member States as a result of austerity measures, tax shifts as well as taxing transport and housing-related energy consumption. The redistributive impact of these policy changes remains mostly unexplored. In...

This paper revisits the personal expenditure tax (PET), the most prominent version of a progressive consumption tax. The PET has a long intellectual tradition in economics, and the merits and demerits of this alternative to the personal income tax have been discussed at length. What has been...

We characterise optimal tax policies when the government has access to consumption taxation and cannot credibly commit to future policies. We consider a neoclassical economy where factor income taxation is distortionary within the period, due to endogenous labour and capital utilisation and...

In this Report, the Authors present the new Value Added Tax (VAT) Gap estimates for 2016, as well as updated estimates for 2012-2016. In addition to the analysis of the Compliance Gap, this Report examines the Policy Gap in 2016 as well as the contribution that reduced rates and exemptions made...

This Report has been prepared for the European Commission, DG TAXUD under contract TAXUD/2017/DE/329, "Study and Reports on the VAT Gap in the EU-28 Member States" and serves as a follow-up to the six reports published between 2013 and 2018. This Study contains new estimates of the Value Added...

This Study contains Value Added Tax (VAT) Gap estimates for 2018, fast estimates using a simplified methodology for 2019, the year immediately preceding the analysis, and includes revised estimates for 2014-2017. It also includes the updated and extended results of the econometric analysis of...

El presente trabajo muestra que los impuestos lineales sobre el consumo son una herramienta potente para lograr una redistribución eficiente. Este es el resultado que se obtiene en un modelo cuantitativo de ciclo de vida que replica la distribución de la renta y de la riqueza en Estados...

This article proposes an extension of the influence of consumption taxation to demand by including the competition between products for the same available income. The assumption is that inelastic demand goods and services will obtain a larger share from available income than elastic demand ones....

We characterise optimal fiscal policies when the government has access to consumption taxation but cannot credibly commit to future policies, in a calibrated Real Business Cycle model of the United States economy. Contrary to the case where only labour and capital income are taxed, the optimal...