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Recovering Hidden Indirect Tax Rates for Improved Calibration in Multisectoral Modelling


  • Juan Carlos Collado
  • Ferran Sancho


We explain in this work why a straight calibration to published input-output or SAM data in multisectoral modelling may lead to the use of an incorrect representation of the productive technology, hence casting doubts on the value of the empirical results. The culprit is the possible presence of indirect taxation in the form of, for instance, a value-added tax. We show how to unveil the hidden tax rates so as to clean up published data of this possibly distorting presence and therefore calibrate the correct production technology. This technology can then be used for multisectoral (i.e. CGE, input-output) analysis and simulations.

Suggested Citation

  • Juan Carlos Collado & Ferran Sancho, 2002. "Recovering Hidden Indirect Tax Rates for Improved Calibration in Multisectoral Modelling," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 81-88.
  • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:81-88 DOI: 10.1080/09535310220111833

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    References listed on IDEAS

    1. Pyatt, Graham, 1985. "Commodity Balances and National Accounts: A SAM Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 155-169, June.
    2. Sancho, F., 1991. "Multiplier Analysis with Flexible Cost Functions," UFAE and IAE Working Papers 190.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Pyatt, Graham, 1988. "A SAM approach to modeling," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 327-352.
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    Cited by:

    1. Ana-Isabel Guerra & Laura Varela-Candamio & Jesús López-Rodríguez, 2016. "Evaluating Macroeconomic And Distributional Impacts Of Current And Alternative Tax Reforms In Spain: An Applied General Equilibrium Approach," EcoMod2016 9322, EcoMod.

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    Input-OUTPUT; Data; Calibration; General; Equilibrium; Models;


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