IDEAS home Printed from https://ideas.repec.org/a/lde/journl/y2008i68p67-93.html
   My bibliography  Save this article

The Impact of Value Added Tax on Household Expenditure in Colombia

Author

Listed:
  • Christian Jaramillo

    (Facultad de Economía – CEDE, Universidad de los Andes)

  • Jorge Tovar

    (Facultad de Economía – CEDE, Universidad de los Andes)

Abstract

this paper quantifies the impact of VAT on household expenditures by taking advantage of the relative variation of VAT in Colombia; this variation is usually used as identification strategy. To this end, we use data drawn from the Encuesta Continua de Hogares (Continuous Household Survey) and we correlate the VAT and household expenditures. In doing so, we estimate the impact of VAT on food, entertainment and telecommunication (cellular phone) expenditures. Our results suggest that an increment of VAT has positive effects on food and telecommunication expenditures and negative effects on entertainment and cultural goods. Additionally, our estimations show that an increasing VAT has differentiated effects depending on household demographic characteristics.

Suggested Citation

  • Christian Jaramillo & Jorge Tovar, 2008. "The Impact of Value Added Tax on Household Expenditure in Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 68, pages 67-93, Enero-Jun.
    • Handle: RePEc:lde:journl:y:2008:i:68:p:67-93
    as

    Download full text from publisher

    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/issue/view/40
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Value Added Tax; fiscal incidence; household expenditure; household surveys;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lde:journl:y:2008:i:68:p:67-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlos Andrés Vasco Correa (email available below). General contact details of provider: https://edirc.repec.org/data/deantco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.