Short-run impacts of a value added tax on forest products

As the federal deficit rises in the United States, interest in a consumption tax system or the value added tax (VAT) also increases. This investigation attempts to determine the short-run impacts of a value added tax upon private forest management. A literature review investigates the theoretical economic impacts of a VAT and experience with the tax in other countries. Then supply and demand functions in both the southern pine sawtimber stumpage and new single-facility housing sector are empirically derived. These functions are used to determine the short-run housing price elasticities of the quantity of houses sold and the price and quantity of stumpage sold. From this, the impact of a VAT-induced housing price change is determined, and simulation with different VAT rates are performed. Based on housing markets alone, it is found that a VAT is likely to cause a short-run reduction in sawtimber stumpage price and quantity demanded which is less than 1/10 percent of the VAT rate.

Name thesis:degree_name

M.S.

Level thesis:degree_level

masters

Discipline thesis:degree_discipline

Forestry

Department dc:contributor.department

Forestry

Grantor dc:publisher

Virginia Polytechnic Institute and State University

Year dc:date.issued

1983

Author dc:creator

• D'Angelo, Karen Rose

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/10919/105973

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/105973