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Distributive Effects of the Value Added Tax on Household Consumption in Colombia: A Nonparametric Estimation.

Revista de Economía del Rosario, Vol. 6. No. 1, 2003

30 Pages Posted: 18 Sep 2006  

Manuel Ramírez Gómez

Universidad del Rosario

Danielken Molina

University of California, San Diego

Abstract

This paper estimates household consumption levels reached after analyzing the effect of eight VAT structures. The exercise used the Colombian Income and Consumption Survey of 1994. After analyzing the effects of the eight VAT structures over consumption, we find that the 2000 VAT structure is neutral. Food consumption trend is always regressive regardless of the tax rate, but this effect can be neutralized by the progressive consumption trend of other goods.

Keywords: VAT, Non parametric methods, regressive tax, progressive tax.

JEL Classification: D12, H22, H31

Suggested Citation

Ramírez Gómez, Manuel and Molina, Danielken, Distributive Effects of the Value Added Tax on Household Consumption in Colombia: A Nonparametric Estimation.. Revista de Economía del Rosario, Vol. 6. No. 1, 2003. Available at SSRN: https://ssrn.com/abstract=929198 or http://dx.doi.org/10.2139/ssrn.929198

Manuel Ramírez Gómez (Contact Author)

Universidad del Rosario ( email )

Calle 12 No. 6-25
Bogota, DC
Colombia

Danielken Molina

University of California, San Diego ( email )

9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0112
United States

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