Long Run vs. Short Run Effects of a Value Added Tax: A Computable General Equilibrium Assessment for Cameroon

2000 ◽  
Author(s):  
Christian Arnault Emini
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Value Added ◽  
Value Added Tax ◽  
A Value ◽  
Long Run ◽  
Short Run

scholarly journals Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax

2021 ◽  
Author(s):  
Jose Maria Da Rocha ◽  
Javier García-Cutrín ◽  
Maria-Jose Gutiérrez ◽  
Raul Prellezo ◽  
Eduardo Sanchez
Keyword(s):  
Value Added ◽  
Point Of View ◽  
Value Added Tax ◽  
Biological Variables ◽  
A Value ◽  
Long Run ◽  
The Social ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

AbstractIntegrated economic models have become popular for assessing climate change. In this paper we show how these methods can be used to assess the impact of a discard ban in a fishery. We state that a discard ban can be understood as a confiscatory tax equivalent to a value-added tax. Under this framework, we show that a discard ban improves the sustainability of the fishery in the short run and increases economic welfare in the long run. In particular, we show that consumption, capital and wages show an initial decrease just after the implementation of the discard ban then recover after some periods to reach their steady-sate values, which are 16–20% higher than the initial values, depending on the valuation of the landed discards. The discard ban also improves biological variables, increasing landings by 14% and reducing discards by 29% on the initial figures. These patterns highlight the two channels through which discard bans affect a fishery: the tax channel, which shows that the confiscation of landed discards reduces the incentive to invest in the fishery; and the productivity channel, which increases the abundance of the stock. Thus, during the first few years after the implementation of a discard ban, the negative effect from the tax channel dominates the positive effect from the productivity channel, because the stock needs time to recover. Once stock abundance improves, the productivity channel dominates the tax channel and the economic variables rise above their initial levels. Our results also show that a landed discards valorisation policy is optimal from the social welfare point of view provided that incentives to increase discards are not created.

scholarly journals Tourism taxes and negative externalities in tourism in australia: A CGE approach

2013 ◽  
Vol 10 (4) ◽  
pp. 200-214
Author(s):  
Ranjith Ihalanayake
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
International Tourism ◽  
Cge Model ◽  
Negative Externalities ◽  
Economic Activities ◽  
Long Run ◽  
Tourism Sector ◽  
Australian Economy ◽  
Short Run

In this paper we analyse general equilibrium effects of an increase in a tourism tax which we hypothetically designed to internalise negative externalities of international tourism in Australia. Several simulations were carried out using a computable general equilibrium (CGE) model of the Australian economy. The simulations were carried out assuming two different economic environments, the short-run and the long-run. The simulation results suggest that due to an increase in tourism taxes, the international tourism sector tends to contract while the other sectors expand. Overall, an increase in tourism taxes appears to be welfare improving in the long-run though it generates a marginal contraction in overall economic activities in the short run.

scholarly journals Taxation and Transportation: Granger Causality Approach in Nigeria

2021 ◽  
Vol 31 (3) ◽  
pp. 1-20
Author(s):  
Adegbite Tajudeen Adejare
Keyword(s):  
Granger Causality ◽  
Value Added ◽  
Lagrange Multiplier Test ◽  
Value Added Tax ◽  
Corporate Tax ◽  
Long Run ◽  
Short Run ◽  
Employment Generation ◽  
Analytical Tools ◽  
Excise Duties

Abstract This study gauges taxation's effect on transportation from 1981 to 2019 in Nigeria. This study further assesses the bearing of causality among Transportation, Corporate tax, Petroleum profit tax, Value added tax and Custom and Excise duties. Analytical tools such as VECM, Johanson Test for Cointegration, Vector Autoregression and granger causality Wald (GCW) test are adopted for analysis. Diagnosis tests such as the Lagrange-multiplier test, Jarque-Bera test and Eigenvalue stability condition are carried out to examine autocorrelation, stability and normality tests respectively. Outcomes divulge that corporate tax has a positive short-run and long-run influence on transportation. Petroleum profit tax, Value added tax and Custom and Excise duties also impact transportation positively and significantly both in the long run and short run as deduced from empirical analysis. This reveals that all the components of taxation observed influence transportation positively both in the long run and short run in Nigeria. Conclusively, taxation impacts transportation positively and significantly both in the short run and long run. This translates that taxation income has been utilized effectively to upsurge transportation in Nigeria. It predicts that transportation will perform excellently in terms of economic development and employment generation if taxable income is properly monitored and utilized effectively.

scholarly journals THE CO - INTEGRATION ANALYSIS OF EFFECT OF VALUE ADDED TAX AND EXCISE DUTIES ON ECONOMIC GROWTH IN NIGERIA

2021 ◽  
Vol 1 (1) ◽  
pp. 44-53
Author(s):  
ADEGBITE, TAJUDEEN ADEJARE
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Value Added ◽  
Value Added Tax ◽  
Excise Duty ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Excise Duties ◽  
Integration Analysis

This study examined the co-integration analysis of effect of value added tax and excise duties on economic growth in Nigeria. It also looked at the direction of causality among value added tax excise duty, interest rate, exchange rate and economic growth employing the method of Johansen co-integration and the Granger causality tests using data spanning the period 1994- 2014. Results showed that VAT has positive significant impact on GDP in the short run but has negative impact on GDP in the long run with (  = 1.296417; t=7.41; P>|t|= 0.000) and ( =- 13.38159; z=-3.60 , P>|z|= 0.000) respectively. Also, VAT does not granger cause GDP. Excise duty impacted GDP negatively in the short run but positively in the long run with (=-1.111069; t=-5.16, , P>|t|= 0.000) and ( =37.54469; z = 4.07; P>|z|= 0.000) respectively. It is recommended that, once the value added tax impacted economic growth positively in the shortrun but negative in the long run, government should increase the rate of value added tax in Nigeria, this will in turn boosting the revenue generation in Nigeria. Also, government should increase excise duty on tobacco and alcoholic so as to have positive significant impact on economic growth in the short run.

scholarly journals Analysis of the Impact of Non-Oil Taxation on Foreign Direct Investment and Economic Services in Nigeria

2021 ◽  
Vol 31 (1) ◽  
pp. 60-83
Author(s):  
Adegbite Tajudeen Adejare ◽  
Olaoye Clement Olatunji
Keyword(s):  
Foreign Direct Investment ◽  
Income Tax ◽  
Direct Investment ◽  
Value Added ◽  
Capital Gain ◽  
Value Added Tax ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Excise Duties

AbstractThis study assessed the nonoil taxation effect on foreign direct investment and economic services from 1994 to 2019 in Nigeria. This study further evaluated the causality bearing amid foreign direct investment, economic services, value-added tax, company income tax, capital gain tax, custom and excise duties, and education tax, devotedly hiring Units root, VECM, Johansen co-integration, and Granger causality tests. Outcomes uncovered that value-added tax has a positive significant effect on economic services but a negative influence on foreign direct investment. Furthermore, value-added tax granger- cause foreign direct investment and economic services. It is also exposed that company income tax and capital gain tax possessed short-run and long-run negative significant influence on foreign direct investment but positive influence on economic services. More so, custom and excise duties upsurge economic services and foreign direct investment positively and significantly. Conclusively, taxation has negative significant impacts on foreign direct investment but upsurge economic services positively in Nigeria. It is recommended that since company income tax impacted foreign direct investment negatively both in the long run and short run, the government should lessen company income tax and upsurge capital allowance bestow on foreign direct investment in order to improve and attract foreign direct investment which will perpetually decrease poverty rate in Nigeria. Also, the government should employ taxation to realize more improvement in economic services and minimize all barriers to foreign direct investment attraction such as import duties and other levies to inspire investors.

Corporate Restructuring through Demerger: A Case Study on Hindustan Unilever Limited

Think India ◽  
2016 ◽  
Vol 19 (3) ◽  
pp. 22-28
Author(s):  
Radhagobinda Basak
Keyword(s):  
Comparative Analysis ◽  
Economic Value ◽  
Value Added ◽  
Corporate Restructuring ◽  
Modern Approach ◽  
A Value ◽  
Long Run ◽  
Short Run ◽  
Wholly Owned Subsidiary

Corporate restructuring decisions (demerger, etc.) are taken to enhance sustainability. Sustainability is enhanced if some more value for the stakeholders can be generated. Traditional measures like return on investment (ROI) can highlight short run sustainability well. But, to indicate long run sustainability, we need modern measures like economic value added (EVA). The present study highlights whether corporate restructuring through demerger adds value for the stakeholders. For this purpose, the demerger of Unilever India Exports Limited from Hindustan Unilever Limited has been taken as a case study. Hindustan Unilever Limited (HUL) demerged its fast moving consumer goods (FMCG) exports business into a wholly owned subsidiary Unilever India Exports Limited (UIEL) with effect from 1st April 2011. In this study, financial performance of HUL has been measured in pre and post demerger period respectively. Then performance of UIEL has also been measured after its incorporation. Performance has been measured under traditional and modern approach both. Finally a comparative analysis has been done between the performances in pre and post demerger period. On the basis of the comparative analysis it has been concluded that the demerger of UIEL is a value generating demerger.    

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