TAX BUOYANCY IN BOLIVIA

Fecha de Publicación
Autores
Rolando Caballero Martínez
Referencia
OLIVIAN ECONOMIC RESEARCH PAPERS Vol. 2(1), 2017 December
Palabras claves
Tax buoyancy
Cointegration
Error Correction Model
CIEB_2017_Ing_Paper_2

Taking advantage of the change of trend in 2006 in aggregate tax collection, as well as in the main taxes and their tax bases, this paper makes an evaluation of the effects of the new prevailing economic conditions as from implementation of the Economic Social Comunitarian Productive Model (MESCP, in Spanish) on tax collection in the period between 2006-First Quarter of 2017, compared to the results obtained from 1990 to 2005. The study is based on the quantification of tax buoyancy for both pe-riods, for which impulse response functions, cointegration vectors and error correc-tion models are estimated. The results suggest that the buoyancies in the second peri-od are largely attributed to the economic context resulting from application of the MESCP. In addition, the estimations show that the tax bases have a useful predictive content to determine the future behavior in the collection of these taxes.