The impact of fiscal policy on income distribution in Tanzania: A computable general equilibrium analysis

dc.contributor.authorMaskaeva, Asiya I.
dc.contributor.authorMmasa, Joel J.
dc.contributor.authorLema, Nicodemas C.
dc.contributor.authorMgeni, Msafiri E.
dc.date.accessioned2020-03-24T11:16:31Z
dc.date.available2020-03-24T11:16:31Z
dc.date.issued2019
dc.descriptionFull Text Report. Also available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405460en_US
dc.description.abstractThe Tanzanian government has established a goal to transform the country into a middle-income and semi-industrialized state by 2025. To promote this transformation, the government exempted the Value Added Tax on capital commodities in FY 2017-2018 as a way to promote utilization of these commodities by manufacturing industries and generate growth, employment, and increased incomes. This study analyzes the impact of a reduction in Value Added Tax on capital commodities (electricity, vehicles, machinery, and equipment) under two different closure rules: (1) fixed governmental expenditures and flexible governmental savings (2) flexible governmental expenditures and fixed governmental savings. Under the first regime, government savings declined and industries that depended heavily on government investments suffered. In the second, output increased for all industrial sectors, leading to a decrease in average unemployment. Real consumption increased for all but the richest household categories.en_US
dc.identifier.citationMaskaeva, A., Mmasa, J., Lema, N., & Msafiri, M. (2019). The impact of fiscal policy on income distribution in Tanzania: A computable general equilibrium analysis. Partnership for Economic Policy Working Paper (2019-07).en_US
dc.identifier.urihttp://hdl.handle.net/20.500.12661/2324
dc.language.isoenen_US
dc.publisherSSRNen_US
dc.subjectFiscal Policyen_US
dc.subjectGovernment budgeten_US
dc.subjectHousehold incomeen_US
dc.subjectCGE modellingen_US
dc.subjectSocial accounting matrixen_US
dc.subjectIncome distributionen_US
dc.subjectValue Added Taxen_US
dc.subjectVATen_US
dc.subjectTaxen_US
dc.subjectRevenueen_US
dc.subjectCapital commodityen_US
dc.subjectGovernment expendituresen_US
dc.titleThe impact of fiscal policy on income distribution in Tanzania: A computable general equilibrium analysisen_US
dc.typeReporten_US
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