Abstract

CASTANEDA RODRIGUEZ, Víctor Mauricio. The tax effort of Colombian municipalities between 2011 and 2017. Is there room to increase their tax collection?. Cuad. Econ. [online]. 2023, vol.42, n.89, pp.331-357.  Epub Feb 29, 2024. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v42n89.99632.

The Colombian municipalities depend mainly on national transfers (more than 70% of their revenue), which is generally taken as an indication of fiscal laziness. This paper aims to calculate the municipal tax effort based on a stochastic tax frontier for a data panel that includes observations for 1,094 territorial entities during the years 2011-2017. The results suggest inter alia that there is no evidence of fiscal laziness and that the average tax effort of Colombian municipalities between 2011 and 2017 was around 78%, which implies that there is little fiscal space to increase local tax collection.

Keywords : Tax effort; stochastic tax frontier; Colombian municipalities; fiscal laziness.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )