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
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: Suggested Citation