Efficiency and Equity Effects of Taxing the Financial Sector: Lessons from a CGE Model for Belgium

31 Pages Posted: 1 Feb 2013

See all articles by Omar Chisari

Omar Chisari

Universidad Argentina de la Empresa (UADE)

Antonio Estache

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES)

Gaëtan Nicodème

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; CEPR and CESifo The views expressed in the article are those of the author and should not be attributed to the European Commission.

Date Written: January 2013

Abstract

This paper assesses the effects of applying VAT or a sales tax on (intermediate or final) sales of the financial sector. It uses a CGE Model calibrated for a small open economy. It highlights the differentiated sectoral and redistributional effects of these taxes and shows the importance of the financial openness of the economy on these results.

Keywords: Belgium, financial sector, modeling, sales tax, taxation, VAT

JEL Classification: H20, H25, H30, H87

Suggested Citation

Chisari, Omar and Estache, Antonio and Nicodeme, Gaetan, Efficiency and Equity Effects of Taxing the Financial Sector: Lessons from a CGE Model for Belgium (January 2013). CEPR Discussion Paper No. DP9320. Available at SSRN: https://ssrn.com/abstract=2210291

Omar Chisari (Contact Author)

Universidad Argentina de la Empresa (UADE) ( email )

1016 Buenos Aires
Argentina

Antonio Estache

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium
32 (0)2 6503838 (Phone)

Gaetan Nicodeme

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

50 Avenue Roosevelt
Brussels 1050
Belgium

CEPR and CESifo The views expressed in the article are those of the author and should not be attributed to the European Commission.

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