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- W3123225278 abstract ". This paper analyzes the short-run effects of a consumption tax increase (VAT or national sale tax) on aggregate demand. Because it increases the prices paid by consumers relative to the prices received by suppliers, a consumption tax affects the supply of real money balances, in addition to reducing expenditures. Hence, when a consumption tax replaces an income tax so as to maintain a balanced government budget, the net effect can plausibly be contractionary." @default.
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- W3123225278 date "2004-02-01" @default.
- W3123225278 modified "2023-09-27" @default.
- W3123225278 title "Monetary effects of a consumption tax" @default.
- W3123225278 cites W1972463985 @default.
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- W3123225278 doi "https://doi.org/10.1111/j.1468-0106.2004.00238.x" @default.
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