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Fiscal Policy, Income Redistribution and Poverty Reduction in Argentina

Author

Listed:
  • Juan Cruz López del Valle

    (Departamento de Economía, Universidad de San Andrés)

  • Caterina Brest López

    (Departamento de Economía, Universidad de San Andrés)

  • Joaquín Campabadal

    (Departamento de Economía, Universidad de San Andrés)

  • Julieta Ladronis

    (International Monetary Fund)

  • Nora Lustig

    (Department of Economics and Commitment to Equity Institute, Tulane University)

  • Valentina Martínez Pabón

    (Department of Economics and Commitment to Equity Institute, Tulane University)

  • Mariano Tommasi

    (Departamento de Economía, Universidad de San Andrés)

Abstract

We implement a fiscal incidence analysis for Argentina with data from the 2017 national household survey. We find that Argentina’s fiscal system reduces inequality and poverty more than it is the case in many other comparable countries. This result is driven more by the size of the state (as measured by social spending to GDP) than by the progressivity of the fiscal system. While there are spending items that are quite progressive and even pro-poor, taxes are unequalizing and a number of subsidies benefit disproportionately the rich.

Suggested Citation

  • Juan Cruz López del Valle & Caterina Brest López & Joaquín Campabadal & Julieta Ladronis & Nora Lustig & Valentina Martínez Pabón & Mariano Tommasi, 2021. "Fiscal Policy, Income Redistribution and Poverty Reduction in Argentina," Working Papers 158, Universidad de San Andres, Departamento de Economia, revised Aug 2021.
    • Handle: RePEc:sad:wpaper:158
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    References listed on IDEAS

    as
    1. Marisa Bucheli & Nora Lustig & Máximo Rossi & Florencia Amábile, 2014. "Social Spending, Taxes, and Income Redistribution in Uruguay," Public Finance Review, , vol. 42(3), pages 413-433, May.
    2. Sean Higgins & Nora Lustig & Julio Ramirez & Billy Swanson, 2013. "Social Spending, Taxes and Income Redistribution in Paraguay," Working Papers 1311, Tulane University, Department of Economics.
    3. Nora Lustig & Carola Pessino, 2014. "Social Spending and Income Redistribution in Argentina during the 2000s: The Increasing Role of Noncontributory Pensions," Public Finance Review, , vol. 42(3), pages 304-325, May.
    4. Michele Gragnolati & Rafael Rofman & Ignacio Apella & Sara Troiano, 2015. "As Time Goes By in Argentina [Los años no vienen solos : oportunidades y desafíos económicos de la transición demográfica en Argentina]," World Bank Publications - Books, The World Bank Group, number 21769, December.
    5. Darío Rossignolo, 2016. "Taxes, Expenditures, Poverty and Income Distribution in Argentina," Commitment to Equity (CEQ) Working Paper Series 45, Tulane University, Department of Economics.
    6. Cetrángolo, Oscar & Grushka, Carlos O., 2020. "El sistema de pensiones en la Argentina: Institucionalidad, gasto público y sostenibilidad financiera," Macroeconomía del Desarrollo 45821, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Sean Higgins & Nora Lustig & Julio Ramirez & William Swanson, 2013. "Social Spending, taxes and income redistribution in Paraguay," Commitment to Equity (CEQ) Working Paper Series 1311, Tulane University, Department of Economics.
    8. Hildegart Ahumada & Alfredo Canavese & Pablo Sanguinetti & Walter Sosa Escudero, 1993. "Efectos distributivos del impuesto inflacionario: una estimación para el caso argentino," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 329-383, July-Dece.
    9. Goraus Tanska,Karolina Marta & Inchauste Comboni,Maria Gabriela, 2016. "The distributional impact of taxes and transfers in Poland," Policy Research Working Paper Series 7787, The World Bank.
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    Cited by:

    1. Baquero,Juan Pablo & Gao,Jia & Kim,Yeon Soo, 2022. "The Distributional Impact of Taxes and Social Spending in Bhutan : An Application withLimited Income Data," Policy Research Working Paper Series 10190, The World Bank.

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    More about this item

    Keywords

    Fiscal policy; inequality; poverty; incidence; public economics;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • D6 - Microeconomics - - Welfare Economics
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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