期刊名称：Zagreb International Review of Economics and Business
印刷版ISSN：1331-5609
出版年度：2016
卷号：19
期号：SCI
页码：1-13
DOI：10.1515zireb-2016-0009
语种：English
出版社：Ekonomski fakultet Sveučilišta u Zagrebu
摘要：This paper examines the effects of lower labor tax burden in Croatia by using Computable general equilibrium (CGE) model. It is a 5-sector (households, firms, government, investors and foreigners) model and economy is disaggregated on three highly aggregated sectors. One of the major advantages of CGE modeling is the evaluation of the overall effects of policy changes, shocks and reforms in the economy. We do this by lowering taxes on labor and simulating changes of all endogenous variables in the model simultaneously. Lastly, we provide sensitivity analysis results. Our results suggest that it is possible to encourage domestic production by reducing taxes on labor, but the potential effects on unemployment should be revised as to get more accurate estimates.
关键词：CGE; small open economy; Croatia; taxes on labor; general equilibrium effects
