Analizando la determinación de impuesto a la renta y sus efectos sobre el crecimiento de la economía boliviana

Valdivia, Daney and Loayza, Lilian (2012): Analizando la determinación de impuesto a la renta y sus efectos sobre el crecimiento de la economía boliviana.

Abstract

We compute the optimal income tax using the Quarterly Employment Survey 2010 and the model proposed by Kaplow (2008). The collection of optimal income taxes excludes 92% of people and it’s applied in the three stages; results show that 17% of income tax is optimal. The “optimal tax” is applied in a modified version of the model proposed by Valdivia and Montenegro (2008) in order to evaluate the redistribution effectiveness of consumption and its effects on economic growth. Results show that rule-of-thumb consumption raise 10.7% with a sacrifice of 4% of ricardian households and an increase of total consumption of 0.63% and economic growth, in the medium term, of 0.3% over its natural level. In the same way, fiscal spending raise and we can see positive effects on factor markets (employment and capital raises). Finally, according to the results showed we can see that welfare should be better because the introduction of the income tax causes intra and intergenerational redistribution across households.

• Item Type: MPRA Paper
• English Title: On the determination of income tax and its effects on the economic growth in Bolivia
• Language: Spanish
• Keywords: income tax, dynamic stochastic general equilibrium model
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency ; Optimal Taxation; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles

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