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[2N4-GS-10x-04] An Analysis of the Effects of Negative and Progressive Consumption Taxes on Economic Inequality and Growth

〇KOICHI NAKAYAMA¹ (1. Saga University)

[[online]]

Keywords:

Multi-Agent Simulation,Negative Consumption Tax,Economic Inequality

This study constructs a multi-agent simulation incorporating a Stock-Flow Consistent (SFC) framework, calibrated using data from the National Survey of Family Income and Expenditure, to evaluate the inequality-reducing effects of introducing negative and progressive consumption taxes. Simulation results indicate that scenarios incorporating negative and progressive consumption taxes tend to stabilize consumption, thereby supporting employment and production activities and maintaining relatively higher GDP levels. Moreover, analysis of the asset Gini coefficient reveals that differences in tax system design influence household saving behavior, leading to clear differences in the formation of asset inequality. These findings suggest that the introduction of alternative consumption tax schemes may reduce both income and asset inequality while achieving economic growth.