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Guidelines on searching for a Dalton-improving tax reform : an illustration with data from Indonesia (Inglês)

This article documents the search for a Dalton-improving tax and expenditure reform using a methodology developed by Yitzhaki and Slemrod (1991) and Mayshar and Yitzhaki (1995). The methodology overcomes the need to define a specific social welfare function by searching instead for reforms that improve each social welfare function belonging to a wide class of functions. The authors apply the method to the energy sector of Indonesia, ignoring distributional constraints, and find that both the subsidy on kerosene and the tax on gasoline should be reduced. But taking distributional concerns into account, the present structure of energy taxes is reasonable and the country may benefit by increasing the subsidy to kerosene, taxing electricity, and reducing the gasoline tax. These conclusions are robust to changes in the relevant parameters representing the Indonesian economy.


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    Yitzhaki, Shlomo; Lewis, Jeffrey D.

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    Leste Asiático e Pacífico,

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    Guidelines on searching for a Dalton-improving tax reform : an illustration with data from Indonesia

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    marginal efficiency cost;income elasticity;change in tax revenue;public fund;marginal cost of funds;public willingness to pay;marginal utility of income;amount of tax revenue;primary factors of production;Central Bureau of Statistics;computable general equilibrium model;social welfare function;expenditure per capita;tax on electricity;Tax Reform;number of beneficiaries;neutral tax reform;retail fuel prices;marginal excess burden;reform household;government tax revenue;tax reform process;indirect utility function;deadweight efficiency loss;factor of production;liquefied natural gas;coefficient of variation;effect of transfer;change in revenue;ad valorem tax;inequality of income;electricity and gas;estimate of revenue;class of model;types of reforms;cost of electricity;social accounting matrix;Energy & Environment;effect of externality;tax rate;tax instrument;efficiency gain;Gasoline Tax;urban population;poor household;marginal benefit;tax base;tax change;public good;social planner;sensitivity analysis;commodity taxation;tax function;kerosene subsidy;relative magnitude;raise revenues;cumulative distribution;deadweight loss;rural area;family size;consumer price;monetary term;poverty gap;marginal analysis;Public Goods;horizontal inequity;marginal reforms;Energy Sector;efficiency concerns;expenditure survey;standard error;income inequality;energy product;average propensity;marginal propensity;regression coefficient;weighted average;labor supply;industrial labor;household category;agricultural labor;public finance;trade issue;energy pricing;tax policy;sectoral tax;domestic product;poverty comparison;import good;food processing;domestic consumption;excise tax;domestic fuel;consumption tax;instrumental variable;Public Spending;trade strategy;consistent estimate;population parameter;asymptotic distribution;urban household;rural kerosene;professional advice;research assistance;tax planner;research department;engine size;library system;high-income household;government revenue;initial value;economic statistic;programming model;financial policies;tax parameter;budget constraint;policy prescriptions;alternative interpretation;indonesian tax;efficiency considerations;kerosene taxation;government activity;optimal size;tax shift;perfect competition;production function;rural population;tax receipt;specific taxes;poverty criterion;upper bind;market system;poverty target;differential treatment;regular income;data requirement;low inequality;inferior good;quantity demand;treasury department;low-income group;high-income group;fuel tax;interfuel substitution;government income;saving rate;ethnic group;independent variable;demand curve;rank order;budget allocation;popular support;aggregate expenditure;lump sum;total consumption;optimal policy;high share;marginal revenue;marginal change;lump-sum tax;indonesian rupiah;monotonic transformation;fuel sector;middle class;economic welfare;reform concern;expenditure reform;diesel oil;fuel oil;exchange rate;productive sector;relative price;domestic sale;intermediate input;Exchange Rates;foreign exchange;domestic good;unrealistic assumption;government waste;additional revenue;



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