Template-type: ReDIF-Paper 1.0
Author-Name: Peichl, Andreas
Title: Benefits and problems of linking micro and macro models – evidence from a flat tax analysis
Abstract: The aim of this paper is to describe the state-of-the-art in simulation and to illustrate benefits and problems of linking micro and macro models by analysing flat tax proposals for Germany. The analysis shows that a personal income flat tax can indeed overcome the fundamental equity efficiency trade-off while simultaneously increasing the tax revenue. However, this result does not hold for a flat tax combining a personal income flat tax with a corporate cash flow flat tax, even when allowing for an ex-post loss in revenue as the top of the distribution still gains the most.

Creation-Date: 20090128
Number: 2009-02
Publication-Status: published
File-URL: https://www.iser.essex.ac.uk/wp-content/uploads/files/working-papers/iser/2009-02.pdf
File-Format: Application/pdf
Handle: RePEc:ese:iserwp:2009-02