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A General Equilibrium Model for Tax Policy Analysis in Colombia: The MEGATAX Model

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  • Thomas F. Rutherford
  • Miles K. LIGHT

Abstract

The paper documents the development of a pilot general equilibrium model for Colombia based on 1996 social accounts. This paper is intended to be a guide for the development, specification, and application of a computable model for the Ministry of Finance and National Department of Planning. As an illustrative calculation, we use the dataset and model to evaluate the marginal cost of raising additional government revenue from different tax sources.

Suggested Citation

  • Thomas F. Rutherford & Miles K. LIGHT, 2002. "A General Equilibrium Model for Tax Policy Analysis in Colombia: The MEGATAX Model," Archivos de Economía 11291, Departamento Nacional de Planeación.
    • Handle: RePEc:col:000118:011291
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    References listed on IDEAS

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    Cited by:

    1. Gustavo Adolfo HERNANDEZ DIAZ, 2011. "Impuestos parafiscales y mercado laboral: Un análisis de Equilibrio General Computable," Archivos de Economía 8954, Departamento Nacional de Planeación.
    2. Diego F. Angel‐Urdinola & Quentin Wodon, 2004. "The Impact on Inequality of Raising the Minimum Wage: Gap‐narrowing and Reranking Effects," LABOUR, CEIS, vol. 18(2), pages 317-327, June.
    3. Thomas F. RUTHERFORD & Miles K. LIGHT & Gustavo Adolfo HERNANDEZ, 2002. "A dynamic general equilibrium model for tax policy analysis in Colombia," Archivos de Economía 1910, Departamento Nacional de Planeación.
    4. Jaime Andrés ESTRADA, 2002. "Optimal enforcement: Finding the right balance," Archivos de Economía 3302, Departamento Nacional de Planeación.
    5. Takeda, Shiro, 2007. "The double dividend from carbon regulations in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(3), pages 336-364, September.
    6. Enrique PINZON GARCIA & Oscar M. VALENCIA ARANA, 2006. "The Determinants of Colombian Firm´s Debt-Asset Ratio (1997-2003)," Archivos de Economía 3582, Departamento Nacional de Planeación.
    7. Maria Otilia Orozco, 2005. "Colombia's Higher Education Quality Control System and Potential for Further Development," Archivos de Economía 2139, Departamento Nacional de Planeación.
    8. Olga Kiuila & Anil Markandya & Milan Ščasný, 2019. "Taxing air pollutants and carbon individually or jointly: results from a CGE model enriched by an emission abatement sector," Economic Systems Research, Taylor & Francis Journals, vol. 31(1), pages 21-43, January.
    9. Gerardo A. Villa D, 2005. "Colombia: Gasto público social regional 1997 - 2003. Con breves comparaciones internacionales," Ensayos Sobre Economía Regional (ESER) 2143, Banco de la República - Economía Regional.
    10. Andrés M. Velasco & Camilo A. Cárdenas Hurtado, 2015. "A Macro CGE Model for the Colombian Economy," Borradores de Economia 12426, Banco de la Republica.
    11. José Daniel REYES PENA, 2003. "The cost of disinflation in Colombia: -A sacrifice Ratio Approach-," Archivos de Economía 3579, Departamento Nacional de Planeación.
    12. Diego F. ANGEL URDINOLA & Quentin WODON, 2003. "Relative labor supply and the gender wage Gap: Evidence for Colombia and the United States," Archivos de Economía 3452, Departamento Nacional de Planeación.
    13. Shiro Takeda & Toshi H. Arimura & Makoto Sugino, 2019. "Labor Market Distortions and Welfare-Decreasing International Emissions Trading," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 271-293, September.
    14. Anil Markandya & Mikel González- Eguino & Marta Escapa, 2012. "Environmental fiscal reform and unemployment in Spain," Chapters, in: Larry Kreiser & Ana Yábar Sterling & Pedro Herrera & Janet E. Milne & Hope Ashiabor (ed.), Carbon Pricing, Growth and the Environment, chapter 1, pages 3-16, Edward Elgar Publishing.
    15. Paula ACOSTA MARQUEZ, 2002. "Does corporate governance matter for developing countries? An overview of the Mexican case," Archivos de Economía 2380, Departamento Nacional de Planeación.
    16. Clara Patricia Martín & Juan Mauricio Ramírez, 2005. "El Impacto Económico de un Acuerdo Parcial de Libre Comercio entre Colombia y Estados Unidos," Borradores de Economia 326, Banco de la Republica de Colombia.
    17. Carlos Alberto CASTRO IRAGORRI, 2003. "Yet another lagging, coincident and leading index for the Colombian economy," Archivos de Economía 3785, Departamento Nacional de Planeación.
    18. Gómez-Plana Antonio G. & Latorre María C., 2019. "Digitalization, Multinationals and Employment: An Empirical Analysis of Their Causal Relationships," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(3), pages 399-439, June.
    19. Diego F. ANGEL-URDINOLA, 2004. "A Minimum Wage Increase Can Have an Adverse Distributional Impact:The case of Colombia," Archivos de Economía 1922, Departamento Nacional de Planeación.
    20. Gustavo Hernández, 2012. "Payroll Taxes and the Labor Market: A Computable General Equilibrium Analysis," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 99-123, May.
    21. Hernandez, Gustavo Adolfo & Light, Miles & Rutherford, Thomas, 2002. "A dynamic general equilibrium model for tax policy analysis in Colombia," MPRA Paper 28435, University Library of Munich, Germany.
    22. Markandya, Anil & González-Eguino, Mikel & Escapa, Marta, 2013. "From shadow to green: Linking environmental fiscal reforms and the informal economy," Energy Economics, Elsevier, vol. 40(S1), pages 108-118.
    23. Allan DRAZEN & Marcela ESLAVA, 2003. "The political business cycle in Colombia on the National and Regional level," Archivos de Economía 3616, Departamento Nacional de Planeación.
    24. Claudio R. Kart E., 2004. "How Can Tax Policies and Macroeconomic Shocks Affect the Poor? A Quantitative Assessment Using a Computable General Equilibrium Framework for Colombia," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, December.
    25. Kiula, Olga & Markandya, Anil & Ščasný, Milan & Menkyna Tsuchimoto, Fusako, 2014. "The Economic and Environmental Effects of Taxing Air Pollutants and CO2: Lessons from a Study of the Czech Republic," MPRA Paper 66599, University Library of Munich, Germany, revised Oct 2015.

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    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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