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portada Unrealistic Profits, Unreliable Results: Rethinking Stockpiling Behavior in Consumption tax Models
Type
Physical Book
Publisher
Author
Language
English
Pages
90
Format
Paperback
ISBN13
9783384274359

Unrealistic Profits, Unreliable Results: Rethinking Stockpiling Behavior in Consumption tax Models

Sanam (Author) · Tredition Gmbh · Paperback

Unrealistic Profits, Unreliable Results: Rethinking Stockpiling Behavior in Consumption tax Models - Sanam

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Synopsis "Unrealistic Profits, Unreliable Results: Rethinking Stockpiling Behavior in Consumption tax Models"

Consumption taxes, levied on the final purchase of goods and services, are a prevalent means for governments to raise revenue. To assess the potential impact of these taxes, economists rely on consumption tax models that simulate consumer behavior and predict revenue generation. However, a key limitation of these models lies in their depiction of stockpiling behavior. Stockpiling refers to the act of consumers purchasing goods in advance of a perceived future price increase, often triggered by an anticipated rise in consumption taxes. While acknowledging stockpiling, existing models often rely on simplifying assumptions, leading to potentially unrealistic and misleading results. This paper argues that current consumption tax models often overestimate the extent of stockpiling, resulting in inflated predictions of profit

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