01691cas a2200253 a 4500 AALejournalIMF009421 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451867473 1018-5941 BD-DhAAL BD-DhAAL Lockwood, Ben. The Value-Added Tax : Its Causes and Consequences / Ben Lockwood, Michael Keen. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Has the VAT proved, as its proponents claim, an especially effective form of taxation? To address this, this paper first shows that a tax innovation-such as the introduction of a VAT- reduces the marginal cost of public funds if and only if it also leads an optimizing government to increase the tax ratio. This leads to the estimation, on a large panel, of a system of equations describing the probability of VAT adoption and the revenue impact of the VAT. The sign of the revenue impact is generally ambiguous, but most countries that have adopted a VAT seem to have gained a more effective tax instrument in doing so. Mode of access: Internet Keen, Michael. IMF Working Papers; Working Paper ; No. 2007/183 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/183/001.2007.issue-183-en.xml IMF e-Library