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Política Fiscal, Ingresos y Desigualdad en Colombia (1990-2015)
[Fiscal Policy, Income And Inequality In Colombia (1990-2015)]

Author

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  • Estrada, Fernando
  • Trujillo, Marlyn Tatiana
  • Pardo, Diego

Abstract

Due to the supported economic growth of the first decade of the 21st century, Colombia managed to reduce the levels of poverty and inequality. Nevertheless, the country continued to present one of the most inequitable economies in the world maintaining a high income concentration. In that sense, this paper aims at analyzing the fiscal policy incident in the income distribution. To that effect, the redistributive impact of the fiscal action in Colombia, Latin America and the group of country members of the Organization for Economic Co-operation and Development (OECD) were examined. Besides, a historical follow-up of the income and public expenditures behavior in Colombia was carried out from 1990 until 2015, highlighting two fundamental facts: 1) from the constitutional reform of 1991, the social public expenditure presented a remarkable growth as a response to the fiscal commitments acquired by the state and 2) the Income Tax and the Value-Added tax (VAT) have been the props on which the national tax structure has been supported. With these elements and the information supplied by the National Survey of Income and Home Expenses, there was approached the study of the distributive incident in Colombia, estimating Gini’s indicators, the income concentration, Kakwani and Reynolds-Smolensky. The results of the present investigation allow to conclude that though the Income Tax to natural people, the Value-Added Tax (VAT) and the public expenditure show a progressive behavior, their redistributive capacity is limited; that is why the Gini’s coefficient don’t present significant variations after the fiscal action.

Suggested Citation

  • Estrada, Fernando & Trujillo, Marlyn Tatiana & Pardo, Diego, 2018. "Política Fiscal, Ingresos y Desigualdad en Colombia (1990-2015) [Fiscal Policy, Income And Inequality In Colombia (1990-2015)]," MPRA Paper 88748, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:88748
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    Cited by:

    1. Villalobos Lopez, Jose Antonio, 2020. "Comentarios a la Cuenta Pública Nacional de México 2019 [Comments to mexico's 2019 National Public Account]," MPRA Paper 104497, University Library of Munich, Germany.

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    More about this item

    Keywords

    Income Distribution; Taxes; Public Social Spending; Fiscal Policy; Inequality; Income Concentration; Progressivity; Redistribution.;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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