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Redesigning the Swedish VAT system – Room for Pareto improvements?

Ahlberg, Amanda LU (2014) NEKH01 20141
Department of Economics
Abstract
This paper investigates the characteristics and history of value added taxes. Many previous studies have focused on the theoretical implications of value added taxes; this paper differs in the method used as well as the phrasing of research question. This paper seeks out to answer whether a redesign of the current Value Added Tax system in Sweden could be a Pareto improvement. It looks at relevant economic theory of taxation and elasticities; empirical and historical background as well as data on food expenditures to analyze the effects of a redesign. In the case of reduced welfare, compensatory reforms are suggested. The main finding is that a redesign of the Swedish VAT-system where the reduced rates are removed and the standard rate... (More)
This paper investigates the characteristics and history of value added taxes. Many previous studies have focused on the theoretical implications of value added taxes; this paper differs in the method used as well as the phrasing of research question. This paper seeks out to answer whether a redesign of the current Value Added Tax system in Sweden could be a Pareto improvement. It looks at relevant economic theory of taxation and elasticities; empirical and historical background as well as data on food expenditures to analyze the effects of a redesign. In the case of reduced welfare, compensatory reforms are suggested. The main finding is that a redesign of the Swedish VAT-system where the reduced rates are removed and the standard rate lowered could lead to Pareto improvements if this is done in conjunction with some compensatory reforms. (Less)
Please use this url to cite or link to this publication:
author
Ahlberg, Amanda LU
supervisor
organization
course
NEKH01 20141
year
type
M2 - Bachelor Degree
subject
keywords
Price elasticities, taxation in Sweden, Consumption taxes, Value added taxes, Optimal taxation
language
English
id
4498990
date added to LUP
2014-06-26 09:29:11
date last changed
2014-06-26 09:29:11
@misc{4498990,
  abstract     = {{This paper investigates the characteristics and history of value added taxes. Many previous studies have focused on the theoretical implications of value added taxes; this paper differs in the method used as well as the phrasing of research question. This paper seeks out to answer whether a redesign of the current Value Added Tax system in Sweden could be a Pareto improvement. It looks at relevant economic theory of taxation and elasticities; empirical and historical background as well as data on food expenditures to analyze the effects of a redesign. In the case of reduced welfare, compensatory reforms are suggested. The main finding is that a redesign of the Swedish VAT-system where the reduced rates are removed and the standard rate lowered could lead to Pareto improvements if this is done in conjunction with some compensatory reforms.}},
  author       = {{Ahlberg, Amanda}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Redesigning the Swedish VAT system – Room for Pareto improvements?}},
  year         = {{2014}},
}