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    Published on Friday, March 15, 2019

    Document number 19/05

    Macroeconomic Effects of Taxes on Banking

    Summary

    This paper evaluates the macroeconomic effects of taxes on banking in a small open economy in a currency union for three tax alternatives: an additional tax on profits, on deposits, and on loans. We propose a DSGE model with a rich detail of taxes and a banking sector and show that these three taxes are equivalent in their effects on macroeconomic variables.

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    Authors

    José Emilio Boscá University of Valencia and Fedea - External partner
    Rafael Doménech BBVA Research - Head of Economic Analysis
    Javier Ferri Valencia University and Fedea - External partner
    Juan Rubio Emory University, CEPR and Federal Reserve of Atlanta - External partner

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    WP_Macroeconomic_Effects_of_Taxes_on_Banking

    English - March 15, 2019

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