GTAP Resources: Frequently Asked Question Details
| Subject: |
FAQ
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| Question: |
I am reading the GTAP book, but I have a question about the calculation of disposable income or regional income at table 2.5 and 2.8. I don't understand why the disposable income is defined adding taxes and not deducting taxes. As I understand the market prices are the prices that take account of taxes or subsidies and agents prices are the prices that do not take account taxes or subsidies .
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| Answer: |
What the right hand takes away (through higher commodity prices and lower factor prices) the left hand must return (through the income equation). |
| Source: |
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| Date Added: |
3/24/2003
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Created: Bacou, M. (3/24/2003)
Updated: Batta, G. (4/23/2024)
Updated: Batta, G. (4/23/2024)
Last Modified: 1/31/2020 12:41:51 PM
