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    Santiago de Chile: Universidad de Chile, Departamento de Economía
    Publication Date: 2012-11-22
    Description: This paper makes a quantitative assessment of possible reforms to the Chilean tax system. The simulations are based on a recursive dynamic computable general equilibrium model that is calibrated with the input-output matrix 2003. For each scenario is considered a cut effective rate of value added tax and an increase in the richest quintile's effective rate of income tax by 20% or 40% respectively. The results of the model are transferred to micro data to analyze the effects disaggregated. Finally, I conclude that cutting the VAT and raising income tax only would generate bounded improvements in poverty and income distribution.
    Keywords: D63 ; E62 ; H22 ; H24 ; H30 ; ddc:330 ; tax reform ; income inequality ; CGE ; microsimulation
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: Spanish
    Type: doc-type:article
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