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“On the Marginal Cost of Public Funds for Argentina: CGE Evaluation and Sensitivity to Regulatory Regimes”

Author

Listed:
  • Chisari, Omar O.

    (Universidad Argntina de la Empresa)

  • Cicowiez, Martín

    (Universidad Argntina de la Empresa)

Abstract

We estimate the Marginal Cost of Public Funds for Argentina using a computable general equilibrium (CGE) model, assessing the sensitivity of the results to the existence of alternative regulatory regimes (Price-Cap and Cost-Plus) for public utilities subject to regulation. Although the estimates are in the range of international studies, we find that the results are sensitive to the regulatory regime, to the presence of exempted goods, the existence of unemployment, the value of the elasticity of labor supply, as well as to the degree of capital mobility, between sectors and internationally.

Suggested Citation

  • Chisari, Omar O. & Cicowiez, Martín, 2008. "“On the Marginal Cost of Public Funds for Argentina: CGE Evaluation and Sensitivity to Regulatory Regimes”," UADE Working Papers 25_2008, Instituto de Economía, Universidad Argentina de la Empresa.
    • Handle: RePEc:ris:uadewp:2008_025
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    More about this item

    Keywords

    computable general equilibrium; Public Funds; Marginal Cost;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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