AN ESTIMATION OF THE EFFECT OF INFRASTRUCTURE INVESTMENT CONSIDERING TAX RATES AND TAX REVENUE

Abstract

MasRAC which is a model system capable of comprehensively evaluating effects brought about by improvement of traffic infrastructure was improved in order to enable integrated future prediction on traffic infrastructure investment and tax rate fluctuation, and to construct a model capable of more accurate tax revenue evaluation. In order to make the tax rate exogenously operable, three main taxes of consumption tax, corporation tax, and income tax were endogenously generated, and their propagation route to economy and finance was constructed. And, using the constructed model, the behavior of main variable in exogenous manipulation of consumption tax rate and corporation tax rate was confirmed, and the effect on the consumption was examined. As a result, it was suggested that the reduction of the consumption tax strongly promoted the increase of consumption, and the increase of the corporation tax was inferior to the consumption tax, but it might affect the increase of consumption.