Tax Reform and Debt Sustainability in Germany; An Assessment Using the Global Fiscal Model
| Autor: | Stephan Danninger, Dennis P Botman |
|---|---|
| Rok vydání: | 2007 |
| Předmět: |
Macroeconomics
media_common.quotation_subject Forecasting and Simulation Subsidies and Revenue: General Fiscal Policies and Behavior of Economic Agents: General [Aging Debt sustainability Economic models Fiscal policy Germany Tax reforms Value added tax VAT tax reform spillover effects global fiscal model taxation fiscal adjustment tax base Macroeconomic Aspects of International Trade and Finance] Entitlement Tax reform Value-added tax Spillover effect Debt Economics General Earth and Planetary Sciences Fiscal adjustment Fiscal sustainability General Environmental Science media_common |
| Popis: | In 2005, the German government announced a far-reaching fiscal adjustment program. This paper uses the IMF’s Global Fiscal Model to study its impact and explores options for addressing long-term pressures from population aging. The growth effects of the planned VAT increase are likely modest, largely owing to the stimulating effect of other tax reductions. The reform will improve the long-term debt path but achieving fiscal sustainability requires further adjustment over the medium term. An additional package of expenditure restraint, entitlement reform, and tax-base broadening compares favorably to other adjustment options. Spillover effects to trading partners of these policies are modest. |
| Databáze: | OpenAIRE |
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