1

This is a summary of an earlier paper published in Thai in Sunpakorn Sarn, 75th Year Anniversary Issue of the Revenue Department, Vol. 37 No. 9 September 1990. For other attempts at modeling value-added taxes using CGE models, see Dervis, de Melo and Robinson (1982), Bovenberg (1987) and Dahl and Mitra (1989). Devarajan (1989) surveys the use of CGE models for tax analysis in developing countries. The computable general equilibrium model of the Thai economy used for this exercise is a descendant of Johansen's (1960) work on the Norwegian economy. It is more closely related to CGE models of developing countries which are surveyed in, among other places, Dervis, de Melo and Robinson (1982). The particular model of Thailand is part of a family of models started by Piyasvasti and Grais (1984) and used extensively for policy analysis over the past five years by the Thailand Development Research Institute (TDRI) and National Economic and Social Development Board (NESDB); Chalongphob, Pranee, and Tienchai (1988), Devarajan and Chalongphob (1988).

2	This model is currently in use at TDRI and the NESDB for macroeconomic analysis and for the preparation of macroeconomic targets for the Seventh National Economic and Social Development Plan.

3	This model has been able to track the Thai economic performance from 1987 to 1990 fairly well.