We present a framework to identify and evaluate marginal tax reforms when merit good arguments and environmental concerns are given explicit consideration. It is applied to the Norwegian indirect tax system for 1999. The analysis shows that the reform passed in Parliament in November 2000 had a...

Procedures of revenue estimation of changes in the personal income tax are discussed. Using revenue estimates of the 2006 tax cuts in the personal income tax in Norway as an example, we show that estimates of costs of cuts differ substantially when different effects are brought into...

The European competition rules restrict governments’ opportunity to differentiate terms of energy accessibility among firms and industries. This easily runs counter with regional and industrial goals of national energy policies. Norway levies a tax on use of electricity, but exempts main...

The effects on the degree of equality of reforms in indirect taxation are analysed by using a microsimulation model of the Norwegian economy subsequent to a CGE model. The two main reforms studied are substitution of a uniform VAT rate on all goods and services and substitution of the...

The partial revenue from each indirect tax and the total revenue from all indirect taxes on consumer goods are derived as functions of all commodity prices, the tax rates of each commodity, total expenditure and demographic variables using a complete demand system. Within this framework we...

This article studies environmental and distributional effects from a differentiated tax system on a set of disaggregated transportation goods. Empirical examination on Norwegian data indicates that higher tax rates on high-pollution luxury modes of transportation such as air flights and taxis...

A complete system of consumer expenditure functions with 28 commodity groups is modelled and estimated by means of Norwegian household panel data. Measurement errors are carefully modelled. Total consumption expenditure is modelled as a latent variable, purchase expenditures on different goods...

The welfare effects of introducing taxes on emissions of carbon dioxide is analysed within an empirical general equilibrium model of the Norwegian economy. A CO2 tax regime where we aim at stabilising the CO2 emissions at the 1990 emission level in 2020 is compared to a reference scenario...

We present an approach for estimating time series of a set of latent variables satisfying accounting identities. We concentrate on a simple case study and comment on possible generalizations. The model consists of three main parts: (i) A system of accounting identities, e.g., a subsystem of the...