The Poverty Implications of Alternative Tax Reforms: Results from a Numerical Application to Pakistan

49 Pages Posted: 15 Aug 2017

See all articles by Andrew Feltenstein

Andrew Feltenstein

Georgia State University - Department of Economics

Carolina Mejia-Mantilla

World Bank

David Locke Newhouse

World Bank

Gohar Sedrakyan

Georgia State University

Date Written: August 14, 2017

Abstract

This paper presents results from four simulations of the impact of potential tax reforms in Pakistan on poverty, shared prosperity, and inequality. The simulations are carried out in the context of a dynamic computational general equilibrium model that incorporates endogenous tax evasion. The simulations link the computational general equilibrium model to household survey data that are incorporated in a micro simulation model. The combined models suggest that equal yield increases in sales and corporate tax rates differ mildly in their impacts on consumption and poverty. Endogenously modeled tax evasion plays an important role in the results.

Suggested Citation

Feltenstein, Andrew and Mejia-Mantilla, Carolina and Newhouse, David Locke and Sedrakyan, Gohar, The Poverty Implications of Alternative Tax Reforms: Results from a Numerical Application to Pakistan (August 14, 2017). World Bank Policy Research Working Paper No. 8164, Available at SSRN: https://ssrn.com/abstract=3018832

Andrew Feltenstein (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-4130093 (Phone)

Carolina Mejia-Mantilla

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

David Locke Newhouse

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Gohar Sedrakyan

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States
404-413-0142 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
14
Abstract Views
245
PlumX Metrics