La Curva de Laffer y la optimización del recaudo tributario en Cartagena de Indias

The Laffer Courve and government optimization of the tax revenues: The Cartagena de Indias case

Daniel Toro González () and Martha Doria

MPRA Paper from University Library of Munich, Germany

Abstract: The public managers worries to increase the local government revenues are almost always related with changes in the tax rates, affecting all the agents in the economy. However, at the same time tax exeptions are used like policy instrument in order to achieve economic growth in some sectors, increasing the pressure over some other sectors. This document analize the effect of the tax rates changes over the local government revenues by the estimation of elasticities. This relation is known as the Laffer Courve. The main results show an inelastic relation between the tax rate and the revenues, wich means that an increase of 1% in the tax rate generate an increase in local government revenues in less than a 1%. The results of the model sugesst that a local policy oriented to raise the local government revenues increasing the tax rate is not effective.

Keywords: Cartagena; local government revenues; tax rates; Laffer Courve (search for similar items in EconPapers)
JEL-codes: H21 H30 (search for similar items in EconPapers)
Date: 2007-04-01
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2703

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