TY - JOUR
T1 - Recovering hidden indirect tax rates for improved calibration in multisectoral modelling
AU - Collado, Juan Carlos
AU - Sancho, Ferran
PY - 2002/3/20
Y1 - 2002/3/20
N2 - We explain in this work why a straight calibration to published input-output or SAM data in multisectoral modelling may lead to the use of an incorrect representation of the productive technology, hence casting doubts on the value of the empirical results. The culprit is the possible presence of indirect taxation in the form of, for instance, a value-added tax. We show how to unveil the hidden tax rates so as to clean up published data of this possibly distorting presence and therefore calibrate the correct production technology. This technology can then be used for multisectoral (i.e. CGE, input-output) analysis and simulations.
AB - We explain in this work why a straight calibration to published input-output or SAM data in multisectoral modelling may lead to the use of an incorrect representation of the productive technology, hence casting doubts on the value of the empirical results. The culprit is the possible presence of indirect taxation in the form of, for instance, a value-added tax. We show how to unveil the hidden tax rates so as to clean up published data of this possibly distorting presence and therefore calibrate the correct production technology. This technology can then be used for multisectoral (i.e. CGE, input-output) analysis and simulations.
KW - Calibration
KW - General equilibrium models
KW - Input-output data
U2 - https://doi.org/10.1080/09535310220111833
DO - https://doi.org/10.1080/09535310220111833
M3 - Article
VL - 14
SP - 81
EP - 88
JO - Economic Systems Research
JF - Economic Systems Research
SN - 0953-5314
ER -