Munich Personal RePEc Archive

Impacto de una reforma fiscal sobre el bienestar económico en un ambiente de incertidumbre

Venegas-Martínez, Francisco and Rodríguez-Nava, Abigail and Palafox-Roca, Alfredo Omar (2014): Impacto de una reforma fiscal sobre el bienestar económico en un ambiente de incertidumbre.

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Abstract

This research is aimed at examining the impact of tax reform on economic welfare in an environment of uncertainty in a small open economy with a regime of flexible exchange rate. It is assumed that the economy is populated by identical rational risk-averse individuals. Unlike the typical assumption of infinitely-lived agents, it is assumed in this paper that with some (positive) probability agents are living in a given finite time. It also assumed that individuals are subject to tax rates on wealth, income and consumption. The distinctive feature of the proposed model is that macroeconomic fundamentals have a random dynamics that is modeled with diffusion processes or diffusion processes combined with Poisson jump processes.

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