| Research paper: Impact of increasing VAT on poverty in Lebanon. |
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| Written by Administrator_LEA |
| Thursday, 04 February 2010 14:28 |
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THE POVERTY AND EQUITY IMPLICATIONS OF A RISE IN THE VALUE ADDED TAX: A MICROECONOMIC SIMULATION FOR LEBANON by Dr. Nisreen Salti and Dr. Jad Chaaban
Abstract:
This paper examines the impact of a rise in the Value Added Tax (VAT) on poverty and inequality in Lebanon. To this end, the paper develops an empirical model based on consumer demand theory and uses only household survey data on expenditures and spatial price indexes. The simulation results using own and cross price demand elasticities estimated with an Almost Ideal Demand System show that the projected VAT rate increases will have a non-negligible impact on poverty and inequality in Lebanon, despite current VAT exemptions.
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Publications Papers Research Papers Research paper: Impact of increasing VAT on poverty in Lebanon.
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