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La TVA sociale : bonne ou mauvaise idée ?

Author

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  • Patrick Fève
  • Julien Matheron
  • Jean-Guillaume Sahuc

Abstract

The authors use two general-equilibrium models to assess the quantitative and dynamic impact of ?social VAT, ? i.e., a tax reform that would substitute a value-added tax for employers? social contributions. The first model is a Walrasian model with no frictions other than distortionary taxes on labor income, capital income, and consumption. The second model adds labor-market matching frictions. We examine two scenarios for social-VAT implementation. In both scenarios, the tax reform generates a small, long-term effect on levels of aggregate variables and a modest welfare gain. In the no-friction model, the gain is substantially reduced when the reform is pre-announced six quarters prior to enactment. The announcement effect is milder in the model with labor-market frictions.

Suggested Citation

  • Patrick Fève & Julien Matheron & Jean-Guillaume Sahuc, 2010. "La TVA sociale : bonne ou mauvaise idée ?," Economie & Prévision, La Documentation Française, vol. 0(2), pages 1-19.
    • Handle: RePEc:cai:ecoldc:ecop_193_0001
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    Cited by:

    1. Nukic, Senada, 2014. "Fiscal Consolidation and Employment Loss," MPRA Paper 60224, University Library of Munich, Germany.
    2. Fanny Henriet & Nicolas Maggiar & Katheline Schubert, 2014. "A Stylized Applied Energy-Economy Model for France," The Energy Journal, , vol. 35(4), pages 1-38, October.
    3. Font, Barbara Castelletti & Clerc, Pierrick & Lemoine, Matthieu, 2018. "Should euro area countries cut taxes on labour or capital in order to boost their growth?," Economic Modelling, Elsevier, vol. 71(C), pages 279-288.
    4. Fanny Henriet & Nicolas Maggiar & Katheline Schubert, 2016. "La France peut-elle atteindre l’objectif du Facteur 4 ? Une évaluation à l’aide d’un modèle stylisé énergie-économie," Economie & Prévision, La Documentation Française, vol. 0(1), pages 1-21.
    5. Fève, P. & Matheron, J. & Sahuc,J-G., 2013. "Strict Fiscal Rules and Macroeconomic Stability: The Case of Social VAT," Working papers 439, Banque de France.

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    More about this item

    Keywords

    social VAT; dynamic general equilibrium; announcement effect;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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