Analizando la determinación de impuesto a la renta y sus efectos sobre el crecimiento de la economía boliviana

On the determination of income tax and its effects on the economic growth in Bolivia

Daney Valdivia and Lilian Loayza

MPRA Paper from University Library of Munich, Germany

Abstract: We compute the optimal income tax using the Quarterly Employment Survey 2010 and the model proposed by Kaplow (2008). The collection of optimal income taxes excludes 92% of people and it’s applied in the three stages; results show that 17% of income tax is optimal. The “optimal tax” is applied in a modified version of the model proposed by Valdivia and Montenegro (2008) in order to evaluate the redistribution effectiveness of consumption and its effects on economic growth. Results show that rule-of-thumb consumption raise 10.7% with a sacrifice of 4% of ricardian households and an increase of total consumption of 0.63% and economic growth, in the medium term, of 0.3% over its natural level. In the same way, fiscal spending raise and we can see positive effects on factor markets (employment and capital raises). Finally, according to the results showed we can see that welfare should be better because the introduction of the income tax causes intra and intergenerational redistribution across households.

Keywords: income tax; dynamic stochastic general equilibrium model (search for similar items in EconPapers)
JEL-codes: E32 H21 (search for similar items in EconPapers)
Date: 2012-01-24
New Economics Papers: this item is included in nep-acc and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/37211/1/MPRA_paper_37211.pdf original version (application/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:pra:mprapa:37211

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().