The Effects of fiscal instruments on the economy of Lithuania

Link to:
Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Knyga / Book
Language:
Anglų kalba / English
Title:
The Effects of fiscal instruments on the economy of Lithuania
Authors:
Karpavičius, Sigitas
Publication Data:
Vilnius : Lietuvos bankas, 2009.
Pages:
Elektroninis (PDF), 35 p
Series:
Working Paper Series; 4
Contents:
Contents Abstract/Santrauka — 1. Introduction — 2. Literature Review — 3. Description of Model — 4. Results — 4.1. Degree of Self-Financing of Tax Cuts — 4.2. Impact of Decrease in Statutory Tax Rate — 4.2.1. Impact of Decrease in Statutory Consumption Tax Rate — 4.2.2. Impact of Decrease in Statutory Labor Tax Rate — 4.2.3. Impact of Decrease in Statutory Capital Tax Rate — 4.3. Impact of Decrease in Government Expenditure — 4.4. Impact of Increase in Transfers — 4.5. Government Expenditure Multiplier — 5. Summary and Concluding Remarks — A. Derivation of Welfare Measure — B. Effective vs. Statutory Tax Rates — B.1. Value Added Tax — B.2. Labor Tax — B.3. Capital Tax — C. Figures and Tables — Bibliography.
Keywords:
LT
Mokesčiai / Taxation; Nacionalinė sąskaityba. Pajamos / National accounts. Income.
Summary / Abstract:

LTTaikant kalibruotą Lietuvos ekonomikos dinaminį stochastinį bendrosios pusiausvyros modelį, darbe nagrinėjamas fiskalinių priemonių poveikis šalies ekonomikai. Gaunama, kad mokesčių sumažinimas "save kompensuoja" 9-16 procentų ilgu laikotarpiu. Taip pat nustatoma, kad mokesčių statutinių tarifų sumažinimas 1 procentiniu punktu turi nedaug įtakos šalies bendrajam vidaus produktui (nuo –0.15 iki 0.15 procento, priklausomai nuo mokesčio). Apskaičiuotas vyriausybės išlaidų multiplikatorius turi skirtingus ženklus ilgu laikotarpiu. Multiplikatoriaus reikšmė priklauso nuo vyriausybės biudžeto papildomo finansavimo šaltinio. Pagrindiniai žodžiai: fiskalinė politika, mokesčių tarifo sumažinimas, vyriausybės išlaidų multiplikatorius. [Iš leidinio]

ENThe goal of this paper is to examine the dynamic effects of fiscal instruments in Lithuania on the economy and welfare. In the analysis, a calibrated dynamic stochastic general equilibrium model for Lithuania is employed. The calculation implies that 9-16 percent of tax cuts are self-financing in the long run. It suggests that the slope of Laffer curve in Lithuanian economy is rather flat. The analysis of effects of different tax cuts shows that the impact of 1 percentage point permanent decrease in statutory tax rate on gross domestic product is very small (within the range of –0.15 through 0.15 percent in all cases). The estimated government expenditure multiplier has a different sign in the long run when various financing sources are used to balance the government budget. Keywords: fiscal policy, degree of self-financing of tax cuts, impact of tax cuts, government expenditure multiplier. [From the publication]

Subject:
Ekonomika / Economics
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https://www.lituanistika.lt/content/100790
Updated:
2023-12-11 19:00:09
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