Modeling the Value Added Tax on Bank Services in the Framework of the Dynamic Stochastic General Equilibrium Model for Iran

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

GHOLAMI AHMAD; ABASINEJAD HOSSEIN

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Journal of Economic Research Year:2018 | Volume:53 | Issue:3 Page(s): 619-645

Download Full-Text

Persian Verion

View:

551

Download:

Cites:

Information Journal Paper

Title

Modeling the Value Added Tax on Bank Services in the Framework of the Dynamic Stochastic General Equilibrium Model for Iran

Author(s)

GHOLAMI AHMAD | ABASINEJAD HOSSEIN | Issue Writer Certificate

Keywords

dynamic stochastic general equilibriumQ1

Macroeconomic fluctuationsQ2

DSGEQ1

VATQ2

ExemptionQ2

Abstract

In the Iran Value Added Tax System, some goods and services, including bank services, are exempt from paying tax. Based on theoretical literature, the Exemption has created several distortions in the economy. Using dynamic stochastic general equilibrium Model, this paper in order to understand the importance of VAT Exemptions in Macroeconomic fluctuations and the fundamental role of financial intermediaries in economic shocks, investigates the effects of levying VAT on bank services and by using the annual economic indicators of Iran during the period 1365-1394, moving from exempt treatment to hypothetical full taxation, the response of macroeconomic variables to various shocks is also examined. To optimize the parameters of the model, we used the Bayesian and calibration method. Finally, accuracy of the model is evaluated using the Brooks & Goleman test and impulse response functions. The model is then simulated under reasonable assumptions regarding parameter values. The results indicate that implying VAT on banks, through reduces their costs, leads to increasing in bank resources and lending power so supply of credits, investment and production increases. Simulation results show that shifting the VAT policy from exempt treatment to full taxation, bank facilities increases and as a result, output is higher under full taxation.

Cites

No record.

References

No record.

Cite

APA: Copy

GHOLAMI, AHMAD, & ABASINEJAD, HOSSEIN. (2018). Modeling the Value Added Tax on Bank Services in the Framework of the Dynamic Stochastic General Equilibrium Model for Iran. TAHGHIGHAT-E-EGHTESADI, 53(3 ), 619-645. SID. https://sid.ir/paper/11841/en

Vancouver: Copy

GHOLAMI AHMAD, ABASINEJAD HOSSEIN. Modeling the Value Added Tax on Bank Services in the Framework of the Dynamic Stochastic General Equilibrium Model for Iran. TAHGHIGHAT-E-EGHTESADI[Internet]. 2018;53(3 ):619-645. Available from: https://sid.ir/paper/11841/en

IEEE: Copy

AHMAD GHOLAMI, and HOSSEIN ABASINEJAD, “Modeling the Value Added Tax on Bank Services in the Framework of the Dynamic Stochastic General Equilibrium Model for Iran,” TAHGHIGHAT-E-EGHTESADI, vol. 53, no. 3 , pp. 619–645, 2018, [Online]. Available: https://sid.ir/paper/11841/en

Related Journal Papers