Posada-Posada, Carlos Esteban

Increases in current income generate marginal propensities to consume that are about 25% higher than those associated with income declines, while reductions in interest rates induce long‑run responses nearly 188% larger than increases. These patterns are consistent with the presence of liquidity…

This paper analyzes whether the policy of VAT exemption days, implemented in Colombia between 2020 and 2022 for some products and merchandise lines, had a positive effect on the consumption of such exempted goods.