A dynamic general equilibrium model for tax policy analysis in Colombia
AbstractThe paper documents a dynamic general equilibrium model for Colombia based on national accounts from 1999. The paper is part of a project intended to develop a capacity for the the design, specification, and application of computable models within the Colombian Ministry of Finance and Department of National Planning. Our analytical framework includes both forwardlooking expectations and Harris-Todaro labor markets. In the present paper we compare numerical results from the dynamic model with simpler static and steady-state formulations to highlight the importance of transitional effects in evaluating tax policy reform. Our applications include measurement of the marginal cost of funds from different tax bases and the evaluation of discrete changes in tariff structure. The structure of the labor and intermediate credit markets have important implications for the ranking alternative tax reform proposals.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28435.
Date of creation: May 2002
Date of revision:
Dynamic general equlibrium; tax reform;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
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