The evolution of tax and benefit policy in Latvia: what has been the place of distributional considerations?
AbstractLatvia has one of the highest levels of income inequality and poverty in the EU. In this article, we argue that distributional considerations, especially assistance for those really in need, have had a low priority in designing tax and benefit policy in Latvia. We estimate the distributional impact of budget austerity measures that were implemented in 2008-2012 under the programme with the international lenders and show that the impact was progressive. At the same time, we argue that many of the reforms implemented in response to the crisis had been called for much earlier, thus in a way these anti-crisis measures were simply correcting previous policy failures. We argue that the international lenders played a major role in defining the direction of the reforms and ensuring protection of the poorest population groups. We estimate that some major reforms implemented by the government after completion of the programme with the international lenders, will have a regressive impact, despite earlier government commitments and lenders’ recommendations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Baltic International Centre for Economic Policy Studies in its journal Baltic Journal of Economics.
Volume (Year): 12 (2012)
Issue (Month): 2 (December)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lelde Ivankova).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.