A Comparison of the Effects of Capital and Labour Taxes in CEE Countries
The aim of the article is to quantify and compare the impact of capital and labour tax on the economies of Central and Eastern Europe (CEE). The impulse‑response functions presented in the paper show that output reacts differently to changes in the taxation of labour and capital. Although there is s...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Lodz University Press
2022-09-01
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| Series: | Comparative Economic Research |
| Subjects: | |
| Online Access: | https://czasopisma.uni.lodz.pl/CER/article/view/14261 |
| _version_ | 1797995030877569024 |
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| author | Piotr Krajewski Katarzyna Piłat |
| author_facet | Piotr Krajewski Katarzyna Piłat |
| author_sort | Piotr Krajewski |
| collection | DOAJ |
| description | The aim of the article is to quantify and compare the impact of capital and labour tax on the economies of Central and Eastern Europe (CEE). The impulse‑response functions presented in the paper show that output reacts differently to changes in the taxation of labour and capital. Although there is some heterogeneity in the magnitude and persistence of tax effects between the analysed CEE countries, the simulations generally indicate that the negative impact of increased capital taxation on GDP is stronger than for labour taxation. More importantly, however, the negative effects of higher taxation on capital are more persistent than in the taxation of labour. This is largely because higher capital taxation strongly reduces savings and the desired stock of capital, which has important long‑term macroeconomic consequences. |
| first_indexed | 2024-04-11T09:55:06Z |
| format | Article |
| id | doaj.art-82c07a308424469b83211bf86b31c794 |
| institution | Directory Open Access Journal |
| issn | 1508-2008 2082-6737 |
| language | English |
| last_indexed | 2024-04-11T09:55:06Z |
| publishDate | 2022-09-01 |
| publisher | Lodz University Press |
| record_format | Article |
| series | Comparative Economic Research |
| spelling | doaj.art-82c07a308424469b83211bf86b31c7942022-12-22T04:30:39ZengLodz University PressComparative Economic Research1508-20082082-67372022-09-01253274210.18778/1508-2008.25.2014163A Comparison of the Effects of Capital and Labour Taxes in CEE CountriesPiotr Krajewski0https://orcid.org/0000-0002-5377-9578Katarzyna Piłat1https://orcid.org/0000-0002-9364-8863Ph.D., Associate Professor at the University of Lodz, Faculty of Economics and Sociology, Department of Macroeconomics Ph.D., Assistant Professor at the University of Lodz, Faculty of Economics and Sociology, Department of Economic MechanismsThe aim of the article is to quantify and compare the impact of capital and labour tax on the economies of Central and Eastern Europe (CEE). The impulse‑response functions presented in the paper show that output reacts differently to changes in the taxation of labour and capital. Although there is some heterogeneity in the magnitude and persistence of tax effects between the analysed CEE countries, the simulations generally indicate that the negative impact of increased capital taxation on GDP is stronger than for labour taxation. More importantly, however, the negative effects of higher taxation on capital are more persistent than in the taxation of labour. This is largely because higher capital taxation strongly reduces savings and the desired stock of capital, which has important long‑term macroeconomic consequences.https://czasopisma.uni.lodz.pl/CER/article/view/14261capital taxlabour taxcee countries |
| spellingShingle | Piotr Krajewski Katarzyna Piłat A Comparison of the Effects of Capital and Labour Taxes in CEE Countries Comparative Economic Research capital tax labour tax cee countries |
| title | A Comparison of the Effects of Capital and Labour Taxes in CEE Countries |
| title_full | A Comparison of the Effects of Capital and Labour Taxes in CEE Countries |
| title_fullStr | A Comparison of the Effects of Capital and Labour Taxes in CEE Countries |
| title_full_unstemmed | A Comparison of the Effects of Capital and Labour Taxes in CEE Countries |
| title_short | A Comparison of the Effects of Capital and Labour Taxes in CEE Countries |
| title_sort | comparison of the effects of capital and labour taxes in cee countries |
| topic | capital tax labour tax cee countries |
| url | https://czasopisma.uni.lodz.pl/CER/article/view/14261 |
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