Advanced Search
MyIDEAS: Login

Equity and Fiscal Policy

Contents:

Author Info

  • Rodrigo Cubero
  • Ivanna Vladkova Hollar

Abstract

How does fiscal policy fare in improving the underlying income distribution in Central America? We integrate the data from a number of existing tax and public expenditure studies for the countries in the region and find that the distributional effect of taxation is regressive but small. In contrast, the redistributive impact of social spending is large and progressive, leading to a progressive net redistributive effect in all countries of the region. We also show that raising tax revenues and devoting the proceeds to social spending would unambiguously improve the income of the poorest households.

Download Info

If 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.
File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=23825
Download Restriction: no

Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 10/112.

as in new window
Length: 42
Date of creation: 01 May 2010
Date of revision:
Handle: RePEc:imf:imfwpa:10/112

Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Email:
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC

Order Information:
Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

Related research

Keywords: Income distribution; Government expenditures; Tax revenues; Tax systems; Taxation; social spending; fiscal policy; gini coefficient; public spending; tax system; tax revenue; tax policy; redistributive impact; distribution of income; tax burden; social security; tax income; gini index; tax payments; tax reform; pro-poor; tax structures; tax rates; tax collection; tax ratio; government revenue; tax collections; distribution of resources; public transfers; tax reforms; expenditure policy; public spending on primary education; government spending; inequality changes; public expenditures; vulnerable groups; consumption distribution; tax base; inequality will; social services; fiscal incidence; public expenditure; measure of inequality; inequality falls; tax structure; social safety net; public finance; tax design; public finances; reducing inequality; tax administration; fiscal redistribution; unequal distribution; fiscal reform; tax credits;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Poterba, James M, 1989. "Lifetime Incidence and the Distributional Burden of Excise Taxes," American Economic Review, American Economic Association, vol. 79(2), pages 325-30, May.
  2. David Locke Newhouse & Irene Yackovlev & Robert Gillingham, 2008. "The Distributional Impact of Fiscal Policy in Honduras," IMF Working Papers 08/168, International Monetary Fund.
  3. Richard M. bird, 2003. "Taxation in Latin America: Reflections on Sustainability and the Balance between Equity and Efficiency," International Tax Program Papers 0306, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
  4. Sònia Muñoz & Stanley Sang-Wook Cho, 2003. "Social Impact of a Tax Reform," IMF Working Papers 03/232, International Monetary Fund.
  5. Ke-young Chu & Hamid Reza Davoodi & Sanjeev Gupta, 2000. "Income Distribution and Tax and Government Social Spending Policies in Developing Countries," IMF Working Papers 00/62, International Monetary Fund.
  6. Glenn P. Jenkins & Hatice Jenkins & Chun-Yan Kuo, 2006. "Is the Value Added Tax Naturally Progressive?," Working Papers 1059, Queen's University, Department of Economics.
  7. Barthold, Thomas A., 1993. "How Should We Measure Distribution?," National Tax Journal, National Tax Association, vol. 46(3), pages 291-99, September.
  8. Engel, Eduardo M. R. A. & Galetovic, Alexander & Raddatz, Claudio E., 1999. "Taxes and income distribution in Chile: some unpleasant redistributive arithmetic," Journal of Development Economics, Elsevier, vol. 59(1), pages 155-192, June.
  9. repec:idb:brikps:14238 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Giovanni Andrea Cornia & Juan Carlos Gómez-Sabaini & Bruno Martorano, 2012. "A New Fiscal Pact, Tax Policy Changes and Income Inequality," Working Papers - Economics wp2012_03.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  2. Guerra, Maria Lucia, 2012. "Implications of the recent macroeconomic policies on employment and labour market outcomes in Peru," ILO Working Papers 478309, International Labour Organization.
  3. Antonio David & Martin Petri, 2013. "Inclusive Growth and the Incidence of Fiscal Policy in Mauritius," IMF Working Papers 13/116, International Monetary Fund.
  4. Barrientos, Armando, 2011. "On the Distributional Implications of Social Protection Reforms in Latin America," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Isis Gaddis & Lionel Demery, 2012. "Benefit incidence analysis, needs and demography. Measurement issues and an empirical study for Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 122, Courant Research Centre PEG.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:10/112. See general 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: (Jim Beardow) or (Hassan Zaidi).

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.