Abstract

RAMIREZ GRIMALDO, Nelly Cristina; CHAPA CANTU, Joana Cecilia  and  ROSITAS MARTINEZ, Juan. Payroll Tax Effects on the State of Nuevo León. An Extended Input-Output Price Model. Econ: teor. práct [online]. 2023, n.58, pp.121-144.  Epub June 26, 2023. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/582023/ramirez.

The short-term economic effects of the 2013 payroll tax rate (ISN) increase, from 2 to 3 percent, in the state of Nuevo León are estimated. An extended input-output price model is formulated, which is calibrated from a Nuevo León SAM with reference to the year 2012. The model assumes that the increase in the ISN is transmitted immediately and completely to costs and prices (forward-shifted tax). The model considers nine productive sectors, two labor inputs, one capital input, one external sector, one sector of the states of the rest of the country, two government levels (state and federal) and one representative household. The results indicate that the impact on prices is greater for: community, social and personal services sector; commerce, restaurants and hotels, and agriculture. A reduction of 321.28 pesos per year in per-family private consumption is also estimated.

Keywords : Payroll tax; input-output model; regional economy.

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