조세 감면 의 합리 화 와 효율 적 운용 방안 연구 ( Tax incentives : Theory , estimates and control methods ) 
 The theoretical models indicate that tax incentives should be given when external effects exist and can ' t be eliminated . The models also show that the tax incentive is superior to government direct spending in the correction of the external effects , while government direct spending is preferable to the tax incentives if strong external effects exist as in national defense and security . 
 We estimate the change of tax revenue with the input - output table when all VAT exempted goods convert to taxable goods . The foregone revenue is estimated to 3 . 2 trillion won in 1995 and 6 . 2 trillion won in 2000 , indicating faster growth than GDP . Housing , government service , education , and health and medical service are the major sources of revenue loss when a single good converts from tax exemption to taxable item . This paper suggests that reinforcement of existing sunset clauses , strengthening of ex ante and ex post control , and introduction of tax expenditure budget for the reduction and efficiency of tax incentive .