Comparing marginal commodity tax reforms in Japan and Korea

Kunio Urakawa, Takashi Oshio

Research output: Contribution to journalReview article

1 Citation (Scopus)

Abstract

We examine the impact of the marginal commodity tax reforms in Japan and Korea, using data from the official household surveys of the two countries. Based on the estimations of two demand systems (linear expenditure system (LES) and almost ideal demand system(AIDS)), we compare the marginal costs of taxing major commodity groups, examine distributive gains from tax reforms based on concentration curves, and assess the impact on poverty based on consumption dominance curves. In particular, we find that revenue-neutral marginal tax reforms incorporating a reduced tax on food and beverages are more likely to face an efficiency-equity trade-off in Korea than in Japan.

Original languageEnglish
Pages (from-to)579-592
Number of pages14
JournalJournal of Asian Economics
Volume21
Issue number6
DOIs
Publication statusPublished - Dec 1 2010

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Commodity taxes
Japan
Korea
Tax reform
Marginal cost
Revenue
Household survey
Demand systems
Expenditure
Tax
Food and beverage
Poverty
Commodities
Equity-efficiency trade-off
Almost ideal demand system

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

Comparing marginal commodity tax reforms in Japan and Korea. / Urakawa, Kunio; Oshio, Takashi.

In: Journal of Asian Economics, Vol. 21, No. 6, 01.12.2010, p. 579-592.

Research output: Contribution to journalReview article

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