Macroeconomic Effects of Capital Income Tax Adjustment: A DSGE-based Numerical Simulation Analysis
- DOI
- 10.2991/ichssr-19.2019.103How to use a DOI?
- Keywords
- Capital income tax; Macroeconomic effect; DSGE model
- Abstract
China's economy has already entered a new normal, and the voice of "reducing taxes and fees and stimulating economic vitality" is growing. It is urgent to improve and implement the active structural tax reduction policy. This paper constructs a multisectoral DSGE model including heterogeneous households, consumer goods manufacturers, real estate manufacturers, monetary authorities and financial authorities. It simulates the macroeconomic effects of capital income tax adjustment from a comparatively static point of view, explores the potential differences in the impact on various households and manufacturers, and clarifies the transmission mechanism.This paper finds that with the decreasing tax rate of capital income tax, the main macroeconomic variables have significant crowding-in effect, and the investment crowding-in effect is the most obvious for the two types of firms, followed by the corresponding departments'output and labor supply. Finally, the corresponding policy recommendations are put forward.
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Tang Mi PY - 2019/05 DA - 2019/05 TI - Macroeconomic Effects of Capital Income Tax Adjustment: A DSGE-based Numerical Simulation Analysis BT - Proceedings of the 2019 5th International Conference on Humanities and Social Science Research (ICHSSR 2019) PB - Atlantis Press SP - 526 EP - 529 SN - 2352-5398 UR - https://doi.org/10.2991/ichssr-19.2019.103 DO - 10.2991/ichssr-19.2019.103 ID - Mi2019/05 ER -