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OPTAX: Modelling Tax Policy in Developing Countries
Antoine Belgodere, Frédéric Puech, Charles Vellutini
ECOPA Working Paper 12, December 2009
OPTAX is a modeling framework for applied taxation analysis. It is based on the computable general equilibrium (CGE) approach, widely used by professional and academic economists to study tax reforms and trade policies. To this model we have appended two key measures of tax efficiency and equity: Marginal Cost of Funds and Marginal Effective Tax Rates. In addition, OPTAX uses to its full potential the power of recent numerical solvers to determine in one run the optimal tax structure, while capturing the distributional aspects and costs of reforms. This paper presents both OPTAX’s underlying principles and an application to tax policy analysis in Mali.
ECOPA Working Paper 12, December 2009
OPTAX is a modeling framework for applied taxation analysis. It is based on the computable general equilibrium (CGE) approach, widely used by professional and academic economists to study tax reforms and trade policies. To this model we have appended two key measures of tax efficiency and equity: Marginal Cost of Funds and Marginal Effective Tax Rates. In addition, OPTAX uses to its full potential the power of recent numerical solvers to determine in one run the optimal tax structure, while capturing the distributional aspects and costs of reforms. This paper presents both OPTAX’s underlying principles and an application to tax policy analysis in Mali.
Modelling tax policy in developing countries
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