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
