United nations of tax incentives

Step 4: Estimate the opportunity cost of TIPT (table 7)
4.1 Applying the short-term output multiplier of 0.6, as adapted 
from Ganelli and J Tervala (2015), to the government 
103 
Any guesstimate like this one should be improved when required data (i.e., 
pre-1991 capital stock in this case) becomes available.

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infrastructure investment equivalent to TIPT-TE on an annual 
basis, the result is the direct GDP impact (DOP 13.6 billion).
4.2 Applying the same multiplier of total GDP impact on the 
direct GDP, as that derived from WTTC dataset, to the direct 
GDP impact produced from Step 4.1, the result is the total 
GDP impact of the government infrastructure investment 
(DOP 43.2 billion).
4.3 Applying the annual tax-revenue to GDP ratio published by 
the OECD to the total GDP impact resulting from Step 4.2, 
the result is the potential revenue gain from the government 
infrastructure investment (DOP 5.8 billion).
Appendix F
Three different multipliers:
a conceptual clarification
There are three different multipliers used in this methodology. The 
table below provides a conceptual clarification among them.

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