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This paper revisits the personal expenditure tax (PET), the most prominent version of a progressive consumption tax … income tax have been discussed at length. What has been missing in the literature so far, however, is a systematic account of …-linear version of the model, and draws a comparison with the existing income tax. The model simulations show that the two tax systems …
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We employ a neoclassical growth model to assess the impact of financial liberalization in a developing country on capital owners` and workers` consumption and welfare. We find in a baseline calibration for an average non-OECD country that capitalists suffer a 42 percent reduction in permanent...
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