Política Fiscal, Ingresos y Desigualdad en Colombia (1990-2015)

FISCAL POLICY, INCOME AND INEQUALITY IN COLOMBIA (1990-2015)

Fernando Estrada, Marlyn Tatiana Trujillo and Diego Pardo

MPRA Paper from University Library of Munich, Germany

Abstract: Due to the supported economic growth of the first decade of the 21st century, Colombia managed to reduce the levels of poverty and inequality. Nevertheless, the country continued to present one of the most inequitable economies in the world maintaining a high income concentration. In that sense, this paper aims at analyzing the fiscal policy incident in the income distribution. To that effect, the redistributive impact of the fiscal action in Colombia, Latin America and the group of country members of the Organization for Economic Co-operation and Development (OECD) were examined. Besides, a historical follow-up of the income and public expenditures behavior in Colombia was carried out from 1990 until 2015, highlighting two fundamental facts: 1) from the constitutional reform of 1991, the social public expenditure presented a remarkable growth as a response to the fiscal commitments acquired by the state and 2) the Income Tax and the Value-Added tax (VAT) have been the props on which the national tax structure has been supported. With these elements and the information supplied by the National Survey of Income and Home Expenses, there was approached the study of the distributive incident in Colombia, estimating Gini’s indicators, the income concentration, Kakwani and Reynolds-Smolensky. The results of the present investigation allow to conclude that though the Income Tax to natural people, the Value-Added Tax (VAT) and the public expenditure show a progressive behavior, their redistributive capacity is limited; that is why the Gini’s coefficient don’t present significant variations after the fiscal action.

Keywords: Income Distribution; Taxes; Public Social Spending; Fiscal Policy; Inequality; Income Concentration; Progressivity; Redistribution. (search for similar items in EconPapers)
JEL-codes: B22 B25 E60 E62 E63 E64 E65 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/88748/1/MPRA_paper_88748.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:88748

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 ().