An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico

The main goal of this paper is to analyze the consequences of two alternative ways of raising funds to finance poverty alleviation programs in Mexico: A Value Added Tax (VAT) reform and a personal income tax reform (IT). The impact of the reforms is analyzed with an applied general equilibrium model...

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Autores: Núñez Rodríguez, Gaspar, Polo Andrés, Clemente
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2008
País:México
Institución:UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN
Repositorio:Ensayos Revista de Economía
Idioma:español
OAI Identifier:oai:ensayos.uanl.mx:article/106
Acceso en línea:https://ensayos.uanl.mx/index.php/ensayos/article/view/106
Access Level:acceso abierto
Palabra clave:poverty alleviation
tax reforms
social accounting matrix
applied general equilibrium
equivalent variation.
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spelling An applied general equilibrium analysis of fiscal reforms to fight poverty in MexicoNúñez Rodríguez, GasparPolo Andrés, Clementepoverty alleviationtax reformssocial accounting matrixapplied general equilibriumequivalent variation.The main goal of this paper is to analyze the consequences of two alternative ways of raising funds to finance poverty alleviation programs in Mexico: A Value Added Tax (VAT) reform and a personal income tax reform (IT). The impact of the reforms is analyzed with an applied general equilibrium model of the Mexican economy, calibrated using a 1996 Social Accounting Matrix. The model includes 18 production sectors, 10 representative households, the government, and the rest of the world. The cash transfers required to attain a fixed increase in the Equivalent Variation (EV) of the lowest income households are obtained either increasing effective VAT rates or IT rates. When all rates are scaled up by the same factor, the VAT reform generates a positive global EV considerably larger than the one obtained scaling the IT rates, though the latter diminishes (increases) lower (higher) income households’ contribution. Setting a uniform VAT rate results in a positive global EV considerably larger than the one obtained with a uniform IT. Moreover, the distribution gap increases in the latter case since the richest households receive the largest benefits. Clasificación JEL: D58, I32, I38.Universidad Autónoma de Nuevo León2008-05-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtículo arbitrado por paresapplication/pdfhttps://ensayos.uanl.mx/index.php/ensayos/article/view/10610.29105/ensayos27.1-4Ensayos Revista de Economía; Vol. 27 No. 1 (2008): MAY 2008; 81-115Ensayos Revista de Economía; Vol. 27 Núm. 1 (2008): MAYO 2008; 81-1152448-84021870-221Xreponame:Ensayos Revista de Economíainstname:UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓNinstacron:UANLspahttps://ensayos.uanl.mx/index.php/ensayos/article/view/106/91Derechos de autor 2008 Gaspar Núñez Rodríguez*, Clemente Polo Andréshttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessoai:ensayos.uanl.mx:article/1062024-08-22T19:25:45Z
dc.title.none.fl_str_mv An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
title An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
spellingShingle An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
Núñez Rodríguez, Gaspar
poverty alleviation
tax reforms
social accounting matrix
applied general equilibrium
equivalent variation.
title_short An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
title_full An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
title_fullStr An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
title_full_unstemmed An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
title_sort An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico
dc.creator.none.fl_str_mv Núñez Rodríguez, Gaspar
Polo Andrés, Clemente
author Núñez Rodríguez, Gaspar
author_facet Núñez Rodríguez, Gaspar
Polo Andrés, Clemente
author_role author
author2 Polo Andrés, Clemente
author2_role author
dc.subject.none.fl_str_mv poverty alleviation
tax reforms
social accounting matrix
applied general equilibrium
equivalent variation.
topic poverty alleviation
tax reforms
social accounting matrix
applied general equilibrium
equivalent variation.
description The main goal of this paper is to analyze the consequences of two alternative ways of raising funds to finance poverty alleviation programs in Mexico: A Value Added Tax (VAT) reform and a personal income tax reform (IT). The impact of the reforms is analyzed with an applied general equilibrium model of the Mexican economy, calibrated using a 1996 Social Accounting Matrix. The model includes 18 production sectors, 10 representative households, the government, and the rest of the world. The cash transfers required to attain a fixed increase in the Equivalent Variation (EV) of the lowest income households are obtained either increasing effective VAT rates or IT rates. When all rates are scaled up by the same factor, the VAT reform generates a positive global EV considerably larger than the one obtained scaling the IT rates, though the latter diminishes (increases) lower (higher) income households’ contribution. Setting a uniform VAT rate results in a positive global EV considerably larger than the one obtained with a uniform IT. Moreover, the distribution gap increases in the latter case since the richest households receive the largest benefits. Clasificación JEL: D58, I32, I38.
publishDate 2008
dc.date.none.fl_str_mv 2008-05-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Artículo arbitrado por pares
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://ensayos.uanl.mx/index.php/ensayos/article/view/106
10.29105/ensayos27.1-4
url https://ensayos.uanl.mx/index.php/ensayos/article/view/106
identifier_str_mv 10.29105/ensayos27.1-4
dc.language.none.fl_str_mv spa
language spa
dc.relation.none.fl_str_mv https://ensayos.uanl.mx/index.php/ensayos/article/view/106/91
dc.rights.none.fl_str_mv Derechos de autor 2008 Gaspar Núñez Rodríguez*, Clemente Polo Andrés
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Derechos de autor 2008 Gaspar Núñez Rodríguez*, Clemente Polo Andrés
https://creativecommons.org/licenses/by/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidad Autónoma de Nuevo León
publisher.none.fl_str_mv Universidad Autónoma de Nuevo León
dc.source.none.fl_str_mv Ensayos Revista de Economía; Vol. 27 No. 1 (2008): MAY 2008; 81-115
Ensayos Revista de Economía; Vol. 27 Núm. 1 (2008): MAYO 2008; 81-115
2448-8402
1870-221X
reponame:Ensayos Revista de Economía
instname:UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN
instacron:UANL
instname_str UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN
instacron_str UANL
institution UANL
reponame_str Ensayos Revista de Economía
collection Ensayos Revista de Economía
repository.name.fl_str_mv
repository.mail.fl_str_mv
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