Razzak, W A (2010): A contribution towards New Zealand's tax reform.
Download (140kB) | Preview
We use the work-leisure choice model to estimate equilibrium labour supply (hours-worked) in New Zealand over the period 2000 – 2008. We then stochastically solve the model over a future period from 2010 to 2050, and evaluate the New Zealand’s new tax policy. We compare the welfare and relative productivity (i.e., relative to Australia) outcomes for several tax policy scenarios.
|Item Type:||MPRA Paper|
|Original Title:||A contribution towards New Zealand's tax reform|
|Keywords:||Taxes, Labour supply, welfare and productivity|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C63 - Computational Techniques; Simulation Modeling
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply
|Depositing User:||Weshah Razzak|
|Date Deposited:||09. Oct 2010 13:02|
|Last Modified:||16. Feb 2013 01:00|
Akhand, H. and H. Liu, 2002, Marginal Income Tax rates in the United States: A Non-Paramteric Approach, Journal of Monetary economics 49, 383-404.
Auerbach, A. and L. J. Katlikoff, 1987, Dynamic Fiscal Policy, Cambridge: Cambridge University press.
Barro, R. J., 1979, On The Determination of Public Debt, Journal of Political Economy 87, No.1, 940-971.
Barro, R. J. and C. Sahasakul, 1986, Average Marginal Tax Rates from Social Security and the Individual Income Tax, The Journal of Business, Vol.59, No.4 Part 1, 555-566.
Barro, R. J. and C. Sahasakul, 1983, Measuring the Average Marginal Tax Rate from the Individual Income Tax, The Journal of Business, Vol. 56, No.4, 419-452.
Baxter, M. and R. King, 1993, Fiscal Policy in General Equilibrium, American Economic Review 83 (June), 315-334.
Boldrin, M., L. J. Christiano and J. D. M. Fisher, 2001, Habit Persistence, Asset Returns, and the Business Cycle, American Economic Review 91 (March), 149-166.
Christiano, L. J., and M. Eichenbaum, 1992, Current Real Business Cycle Theories and Aggregate Labour Market Fluctuations, American economic Reviews, 82 (June), 430-450.
Cole, H. L., and L.E. Ohanian, 1999, The Great Depression in the United States from a Neoclassical Perspective, Federal Reserve Bank of Minneapolis Quarterly Review 23 (Winter), 2-24.
Cole, H. L., and L.E. Ohanian, 2003, The Great UK Depression: A Puzzle and a Possible Resolution, Review Of Economic Dynamics 5 (January), 19-44.
Cooley, T., (ed.), 1995, Frontiers of Business Cycle Research, Princeton: Princeton University Press.
Feenburg D. R. and E. Coutts, 1993, An Introduction to the TAXSIM Model, Journal of Policy Analysis and Management 12, 189-194.
Hall, R., 1978, Stochastic Implications of the Lifecycle – Permanent Income Hypothesis, Journal of Political Economy 86 (6), pp. 971-87.
Hall, J. and G. Scobie, 2005, Capital Shallowness, A Problem for New Zealand, New Zealand Treasury Working Paper No 5.
Hanson, G. D., 1985, Indivisible Labour and the Business Cycle, Journal of Monetary Economics 16 (November), 309-327.
Johnson, R., W. A. Razzak, and S. Stillman, 2007, Has New Zealand Benefited from Its Investments in Research and Development?, Applied Economics, Volume 39, Issue 19, November 2007, 2425-2440.
Keho, T. J. and E. C. Prescott, 2002, Great Depressions of the 20th Century, Review of Economic Dynamics 5 (January) 1-18.
Kydland, F. E. and E. C. Prescott, 1982, Time to Build and Aggregate Fluctuations, Econometrica 50 (November), 1345-1370.
Laabas, B. and W A Razzak, 2010, Taxes, Natural Resource Endowment, and the Supply of Labor: New Evidence, Arab Planning Institute Working Paper, Kuwait.
Lucas, R. Jr., 1972, Expectations and the Neutrality of Money, Journal of Economic Theory 4, 103-24.
Lucas, R. Jr. and L. A. Rapping, 1969, Real Wages, Employment and Inflation, Journal of Political economy 77 (September-October), 721-754.
McGrattan, E. R. and E. C. Prescott, 2003, Average Debt and Equity Returns: Puzzling? American Economic Review 93 (May), 392-397.
Nickell, S., 2003, Employment and Taxes, CESIFO Working Paper No.1109, (December).
Prescott, E. C., 2004, Why Do Americans Work So Much More Than Europeans? Federal Reserve Bank of Minneapolis Quarterly Review, Vol. 28, No.1, 2-3.
Prescott, E. C, 2002, “Prosperity and Depression: 2002 Richard T Ely Lecture,” The American Economic Review, Papers and Proceedings of the AEA Meeting.
Razzak, W. A., 2007 Explaining the Gaps in Labour Productivity in Some Developed Countries: New Zealand and Australia – The United States and Canada, 1988-2004, Applied Econometrics and International Development, Vol. 7-2, 193-229.
Seater, J. J., 1982, Marginal Federal Personal and Cooperate Income Tax rates in the U.S., 1909 – 1975, Journal of Monetary Economics 10, 361-381.
Solow, R M, Technical Change and Aggregate Production Function, Review of Economics and Statistics 39, (1957), 312-320.
Stephenson, E. F., 1998, Average Marginal Tax Rates Revisited, Journal of Monetary Economics 41, 389-409.
Shimer, R., 2009, Convergence in Macroeconomics: The Labour Wedge, American Economic Journal Macroeconomics, Vol. 1 No. 1 (January), 280-297.