Does the Value-added Tax Lead to an `Ineciently' Large Government?

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: 이동원
• 간행물 정보: 『한국재정학회 학술대회 논문집』2014년도 추계학술대회 논문집, 1~23쪽, 전체 23쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2014.10.20

영문 초록

This paper examines the hypothesis that the adoption of a value-added tax (VAT) leads to an inecient expansion of government size. We propose a simple conjecture: Demandside push for ineciently large government increases the tendency for a VAT to substitute for other tax instruments|rather than simply to raise more revenue. Using a panel of 33 OECD countries over 38 years, we nd that (1) countries with a higher level of political activities gain less revenue from the adoption of a VAT, and (2) the use of VATs has not caused an increase in inecient forms of government expenditures. These ndings suggest that inecient expansion of government is less likely to be nanced by an ecient tax, VAT. JEL-Code: H20, H21, H60

목차

1 Introduction

2 A Simple Model of the Money Machine Hypothesis

3 Empirical Evidence

4 Has the VAT Increased the Inecient Forms of Govern-ment Expenditures?

5 VAT and Economic Welfare: Illustration

6 Conclusion

References

키워드

VAT rent-seeking government size tax eciency money machine