Sosiaalietuuksien rahoituksen alueelliset kuluttajahintavaikutukset

Rantala Olavi

This study develops a model which can be used to evaluate the producer price effects and regional consumer price effects of alternative methods of financing social security, i.e. employers’ social security contributions and value added taxes. In the model system producer prices are determined by an input-output price model. National and regional consumer prices are determined by domestic producer prices, import prices and value added taxes. Simulations made by the model show e.g. that a decrease in the value added tax rate of food financed by a simultaneous increase in employers’ social security contributions leads to a fall in consumer price level and benefits mostly the elderly and pensioner households and the unemployed people, i.e. households with relatively large food expenditures. Regionally the largest consumer price fall takes place in Northern Finland. Consumer prices decrease least in Southern Finland.

Publication info

Series
Discussion Papers no. 1125
Date
2008
Avainsanat
tuottajahinnat, alueelliset kuluttajahinnat
Keywords
producer prices, regional consumer prices
JEL
D12,D57,E31
Pages
25
Price
10 €
Availability of print version
Language
Finnish