콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy
Social Development Social Welfare

Print

Welfare effects of tax reform : Case of Korea

Related Document
Frame of Image
  • Welfare effects of tax reform
  • Kim, Sunghyun H.
  • Suffolk University


link
Title Welfare effects of tax reform
Similar Titles
Sub Title

Case of Korea

Material Type Reports
Author(English)

Kim, Sunghyun H.

Publisher

[Boston]:Suffolk University

Date 2007-11
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Social Development < Social Welfare
Holding Suffolk University

Abstract

This paper analyzes welfare effects of revenue neutral tax reform using a small open economy dynamic general equilibrium model. We apply this model to the Korean data and examine welfare effects of various tax reforms; removal of capital income tax and/or labor income tax financed by consumption tax. We investigate both long run equilibrium and transitional dynamics. The results suggest that there are sizable welfare gains (1-3% of lifetime consumption) when factor income taxes are replaced by consumption tax. Overall gains are generated by long run gains despite short run welfare losses. However, there is welfare loss when capital income tax is replaced by labor income tax.