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  • Informality and formality: Fiscal policy in DSGE model 

    Botero, Jesús; Vargas, Christian; Hurtado Rendón, Álvaro; Franco, Humberto; jabotero@eafit.edu.co; cvargas3@eafit.edu.co; ahurtad1@eafit.edu.co; hfranco@eafit.edu.co (Universidad EAFIT; Escuela de Economía y Finanzas, 2014-03-11)
    We develop a DSGE model of the Colombian economy to assess the effect of tax policy on informal employment and income distribution.The model recreates a small open economy, with persistent income inequality, a substantial ...