Dynamics of tax elasticities: Analysis for Guatemala 2008-2020
DOI:
https://doi.org/10.36958/sep.v6i1.153Keywords:
tax elasticity, integration, taxesAbstract
OBJECTIVE: the objective was to estimate the long and short term elasticities of the different taxes in Guatemala reflected in the Gross Domestic Product and imports. METHOD: the results of the tax elasticities in the long term were obtained using dynamic ordinary least squares (MCOD) models, following the Engle and Granger methodology, and for the short-term elasticities the Ordinary Least Squares (OLS) method was used. applying an error correction mechanism (ECM), in the periods between 2008-2020. RESULTS: the calculated parameters show that the long-term individual and general tax elasticity presents an elastic behavior, but in the short term the elasticity is lower with an inelastic situation with the exception of income tax, with adjustment levels from 24% at 40% quarterly. CONCLUSION: it is concluded that the collection of most individual taxes and total tax revenues in the long term is progressive, consequently a relative sensitivity of internal taxes is shown to a change in GDP and imports in taxes resulting from trade However, the findings are countercyclical in the short term.
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