• Media type: E-Book
  • Title: Income Tax Reductions in Production Networks
  • Contributor: Fu, Chunyang [VerfasserIn]; Li, Miao [VerfasserIn]; Wang, Bin [VerfasserIn]
  • imprint: [S.l.]: SSRN, 2022
  • Extent: 1 Online-Ressource (13 p)
  • Language: English
  • DOI: 10.2139/ssrn.4155277
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 6, 2022 erstellt
  • Description: We analytically characterize the comparative statics of the macroeconomy after in- come tax reductions in which productions are organized in networks. We contribute to the literature by showing that the sectoral income tax reductions’s first-order effect on the GDP is given by a sufficient statistics: the product of the sectoral labor demand elasticity and sectoral Domar weight minus the sectoral labor share in the total labor supply. Around the efficient economy, the first-order effect is zero as other real distor- tions in the literature
  • Access State: Open Access