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Impuesto progresivo al ingreso y crecimiento. Abordaje desde la complejidad

Author

Listed:
  • Emiliano Álvarez

    (Universidad de la República
    Universidad Nacional del Sur)

  • Marcelo Álvez

    (Banco Central del Uruguay
    Universidad de la República)

  • Juan Gabriel Brida

    (Universidad de la República)

Abstract

In this work, an agent-based stock-flow consistent model (AB-SFC) is applied to analyze economic growth differences when establishing different types of taxes on personal income, proportional and progressive. Different combinations of threshold and rate are tested. There are no significant differences in economic performance in the presence of one tax scheme or the other. This tax design, which only distinguishes two sections of income, is not able to reduce the inequality generated throughout the income distribution. The tax design seems to offset the inequality in the lower section of income distribution through tax exemption for low-income households, but not the one generated in the section of higher income. An additional policy is necessary to offset the differences generated in the range of higher-income individuals. In this exercise, there is no evidence of a deterioration of economic growth in the presence of a progressive income tax, instead of a proportional one.

Suggested Citation

  • Emiliano Álvarez & Marcelo Álvez & Juan Gabriel Brida, 2020. "Impuesto progresivo al ingreso y crecimiento. Abordaje desde la complejidad," Documentos de trabajo 2020008, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2020008
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    More about this item

    Keywords

    agent-based model; inequality; economic growth; income tax distortion; computational modeling;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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