Abstract

BRAVO, Héctor Manuel; CASTRO, Juan Carlos  and  GUTIERREZ, Miguel Ángel. Assessment of Fiscal Policy to Determine the Optimal Investment Level in Water Services, Sewerage and Sanitation. Gest. polít. pública [online]. 2011, vol.20, n.1, pp.63-95. ISSN 1405-1079.

This paper presents the results of analyzing an investment policy about water supply, sewerage and sanitation in the Mexican economy. The authors evaluated the effects of a fiscal policy that taxes the water consumption of various economical sectors so that the funds raised will finance the investment in water supply and wastewater sector. In order to evaluate the economic impact, the authors use a computable general equilibrium model. It is concluded that there is an optimal level of investment in the water supply sector which is closely linked to the form of financing.

Keywords : fiscal policy; social accounting matrix; planning; resource allocation; social welfare.

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