A dynamic general equilibrium model for tax policy analysis in Colombia

Thomas Rutherford (), Miles K. Light () and Gustavo Adolfo Hernandez ()

No 1910, Archivos de Economía from Departamento Nacional de Planeación

Abstract: The paper documents a dynamic general equilibrium model for Colombia based on national accounts from 1999. The paper is part of a project intended to develop a capacity for the the design, specification, and application of computable models within the Colombian Ministry of Finance and Department of National Planning. Our analytical framework includes both forwardlooking expectations and Harris-Todaro labor markets. In the present paper we compare numerical results from the dynamic model with simpler static and steady-state formulations to highlight the importance of transitional efects in evaluating tax policy reform. Our applications include measurement of the marginal cost of funds from di®erent tax bases and the evaluation of discrete changes in tari® structure. The structure of the labor and intermediate credit markets have important implications for the ranking alternative tax reform proposals.

Keywords: General; Equilibrium (search for similar items in EconPapers)
Pages: 51
Date: 2002-05-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://colaboracion.dnp.gov.co/CDT/Estudios%20Econmicos/189.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000118:001910

Access Statistics for this paper

More papers in Archivos de Economía from Departamento Nacional de Planeación Contact information at EDIRC.
Bibliographic data for series maintained by Carlos Fernando Rincon Rojas ().