Comparing marginal commodity tax reforms in Japan and Korea

Kunio Urakawa, Takashi Oshio

Research output: Contribution to journalReview articlepeer-review

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 2010

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Comparing marginal commodity tax reforms in Japan and Korea'. Together they form a unique fingerprint.

Cite this