The Effects of Reducing Profit Taxes (Partial vs General Equilibrium)
13 Pages Posted: 18 Sep 2018 Last revised: 12 Jul 2019
Date Written: September 4, 2018
This document presents a set of estimates on the effects of reducing the rate of income tax on enterprises in the Colombian case. The estimate made under a partial equilibrium scheme generates different and less reliable results than those based on a general equilibrium model.
Keywords: Profits Tax Rate, Investment, Savings, Per Worker GDP, Interest Rate, Macroeconomic Model
JEL Classification: E13, E17, E22, E27, E62
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