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THE ROLE OF COUNTRY GOVERNANCE ON VALUE-ADDED TAX AND INEQUALITY

Sok-Gee Chan, Zulkufl y Ramly

Rising income inequality is a growing concern for governments due to its adverse effect on the poverty level, income distribution, social and institutional stability, which in turn impede the economic growth and may lead to political instability. Taxation has long been regarded as the key instrument in a fiscal policy to reduce income inequality via the redistribution of tax revenues to finance public goods and to correct for market-income inequality (Atkinson, 1991). Although prior studies have extensively investigated the effect of taxation on income inequality (Martinez-Vazquez et al., 2012), the findings are inconclusive especially in developing countries (Bird & Zolt, 2014).
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EFFECTS OF FISCAL POLICY SHOCKS IN CE3 COUNTRIES (TVAR APPROACH)

Rajmund Mirdala, Martin Kameník

European Union member countries experienced a decrease in the macroeconomic performance during the early stages of the economic and debt crisis. Significant deterioration in the fiscal stance as one of the primary implications of the economic recession revealed questions associated with fiscal sustainability in terms of threshold levels of fiscal deficit and sovereign debt that individual countries can sustain over longer period of time (Wöhlbier, Astarita, & Mourre, 2014).
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IMPACT OF ENVIRONMENTAL TAXES ON SUSTAINABLE ENERGY DEVELOPMENT IN BALTIC STATES, CZECH REPUBLIC AND SLOVAKIA

Dalia Štreimikienė

Economic stabilization policies can be implemented with the aid of either monetary or fiscal policy. A forward-looking, mediumterm oriented monetary policy provides the best framework to this purpose. Fiscal policies too should have a medium to longterm orientation and largely rely on automatic stabilizers in the short-term.
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