This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Review: Vol. 100 No. 4 (September 2010)
AER Volume. 100, Issue 4 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
AER Forthcoming Articles
Full-text Article
Download Data Set (70.81 KB)
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
AER Forthcoming Articles
Consumption Taxes and Redistribution
Article Citation
Correia, Isabel. 2010. "Consumption Taxes and Redistribution."
American Economic Review,
100(4): 1673-94.
DOI: 10.1257/aer.100.4.1673
DOI: 10.1257/aer.100.4.1673
Abstract
This study considers replacing the current US tax system with only a flat tax consumption tax, showing, in contrast to the literature, that such a reform leads to a decline in inequality and increase in welfare for the welfare-poor. The results are obtained from a simple model that identifies the main channels through which the reform affects the economy. It is shown also that these novel results depend on the distribution of wealth and earnings, and that they hold for the relevant empirical distributions. (JEL D31, H23, H25)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (70.81 KB)
Authors
Correia, Isabel (Bank of Portugal)
JEL Classifications
D31: Personal Income, Wealth, and Their Distributions
H23: Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H25: Business Taxes and Subsidies including sales and value-added (VAT)
H23: Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H25: Business Taxes and Subsidies including sales and value-added (VAT)
