Impuesto progresivo al ingreso y crecimiento. Abordaje desde la complejidad

Emiliano Álvarez, Marcelo Álvez () and Juan Brida
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Emiliano Álvarez: Universidad de la República
Marcelo Álvez: Banco Central del Uruguay

No 2020008, Documentos de trabajo from Banco Central del Uruguay

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.

Keywords: agent-based model; inequality; economic growth; income tax distortion; computational modeling (search for similar items in EconPapers)
JEL-codes: C63 D63 H23 O33 O49 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2020
New Economics Papers: this item is included in nep-cmp
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https://www.bcu.gub.uy/Estadisticas-e-Indicadores/ ... 20Trabajo/8.2020.pdf First version, 2020 (application/pdf)

Related works:
Working Paper: Impuesto Progresivo al Ingreso y Crecimiento: Abordaje desde la Complejidad (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:bku:doctra:2020008

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