 The marginal cost of public funds of mineral and energy taxes in PeruArturo Vásquez Cordano and Edward Balistreri Resources Policy, 2010, vol. 35, issue 4, 257-264 Abstract: We estimate the Marginal Cost of Public Funds (MCPF) for Peru using a detailed computable general equilibrium (CGE) model. Revenues from all major sources (including taxes on factors of production, natural resources such as energy and minerals, consumption, and imports) are examined. Our focus is on the efficiency implications of mineral and energy taxes, given their importance to Peruvian public finance. The primary data are from the Global Trade Analysis Project (GTAP) as modified to include detailed tax information from the Peruvian Ministry of Economy and Finance and the Peruvian Internal Revenue Service. Consistent with the theories of public finance, we find that the MCPF is greater for activities that face high or widely varying tax rates. The taxes on energy and mineral activities represent a clear illustration of this relationship. The results presented in this paper indicate opportunities to improved efficiency in the current tax mix, and also indicate the financing costs of proposed expenditures that would be funded with taxes on energy and natural resources. Keywords: Peru; Computable; general; equilibrium; Marginal; cost; of; public; funds; Resource; taxes; Energy; taxes; Mineral; taxes (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:35:y:2010:i:4:p:257-264 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
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