IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v42y2014i3p391-412.html
   My bibliography  Save this article

The Incidence of Social Spending and Taxes in Peru

Author

Listed:
  • Miguel Jaramillo

Abstract

Standard tax and benefit incidence analysis is used to estimate the effects of fiscal policy on poverty and inequality in Peru. Results suggest that the extent of inequality and poverty reduction induced by Peru’s fiscal policy is small. This result is associated with low social spending rather than with inefficient spending. Most social spending components are progressive and overall social spending is also progressive. We find that direct cash transfers are well targeted and are especially effective in reducing extreme poverty in rural areas. We also find that in-kind transfers are effective in reducing inequality. Finally, direct taxes slightly reduce inequality, while, countering intuition, indirect taxes are neutral once informality is incorporated in the estimates.

Suggested Citation

  • Miguel Jaramillo, 2014. "The Incidence of Social Spending and Taxes in Peru," Public Finance Review, , vol. 42(3), pages 391-412, May.
    • Handle: RePEc:sae:pubfin:v:42:y:2014:i:3:p:391-412
    DOI: 10.1177/1091142113496134
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1091142113496134
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1091142113496134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:42:y:2014:i:3:p:391-412. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.