The efficiency gains of VAT, income tax, corporate tax and capital income tax reductions are evaluated in the dynamic CGE model DREAM.
The sustainability of the fiscal policy program is evaluated given the major increase in the demographic ageing and the derived increase in the public expenditures.
Two macroeconomic models for Denmark; the macroeconometric model ADAM (Annual Danish Aggregate Model) and the dynamic CGE-model DREAM (Danish Rational Economic Agents Model) are compared.