Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/316392 
Erscheinungsjahr: 
2024
Quellenangabe: 
[Journal:] CBN Journal of Applied Statistics [ISSN:] 2476-8472 [Volume:] 15 [Issue:] 1 [Year:] 2024 [Pages:] 55-82
Verlag: 
The Central Bank of Nigeria, Abuja
Zusammenfassung: 
This study sets out to determine the desirable policy adjustment in the tax rate for Nigeria that ensures the least welfare cost. A calibrated small open-economy New Keynesian Dynamic Stochastic General Equilibrium (NKDSGE) model of the Nigerian economy is applied to achieve this objective. Within this framework, we examined the impact of an increase in value-added tax (VAT) rate from 7.5 to 15 percent on key macroeconomic variables relative to the impact of an increase in company income tax (CIT) rate from 30 to 35 percent on macroeconomic variables. Further- more, we examined the welfare costs of the increases in the rates by ranking their welfare costs. The results indicate that increases in VAT and CIT rates decrease output, consumption and investment in the short run. Furthermore, findings revealed that households are willing to give up around 23 percent of their non-stochastic steady-state consumption to ensure that an increase in VAT rate policy is implemented. This is so because the increase in the VAT rate policy resulted in an 11.33 percent welfare cost relative to an increase in the CIT rate policy, which resulted in a 23.18 percent welfare cost. Therefore, the Nigerian government should not consider the increase in CIT rate policy as a desirable policy option.
Schlagwörter: 
DSGE models
fiscal policy
welfare
JEL: 
C63
E37
D61
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
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