Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273312 
Year of Publication: 
2022
Citation: 
[Journal:] Problems of Economic Transition [ISSN:] 1557-931X [Volume:] 63 [Issue:] 10-12 [Publisher:] Taylor & Francis [Place:] London [Year:] 2022 [Pages:] 576-588
Publisher: 
Taylor & Francis, London
Abstract: 
We introduce progressive consumption taxation into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999–2016). We investigate the quantitative importance of the presence of progressive taxation of consumption expenditures for the stabilization of cyclical fluctuations in Bulgaria. We find the quantitative effect of such a tax to be very small, and thus not important for either business cycle stabilization or public finance issues.
Subjects: 
business cycles
progressive consumption taxation
JEL: 
E24
E32
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Manuscript Version (Preprint)
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