Equity and Fiscal Policy: The Income Distribution Effects of Taxation and Social Spending in Central America
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.
|Date of creation:||01 May 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 623-7000
Fax: (202) 623-4661
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|
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.:
- Eduardo M.R.A. Engel & Alexander Galetovic & Claudio E. Raddatz, 1998.
"Taxes and Income Distribution in Chile: Some Unpleasant Redistributive Arithmetic,"
NBER Working Papers
6828, National Bureau of Economic Research, Inc.
- 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.
- Eduardo Engel & Alexander Galetovic & Claudio Raddatz, 1998. "Taxes and Income Distribution in Chile: Some Unpleasant Redistributive Arithmetic," Documentos de Trabajo 41, Centro de Economía Aplicada, Universidad de Chile.
- SÃ²nia MuÃ±oz & Stanley Sang-Wook Cho, 2003. "Social Impact of a Tax Reform: The Case of Ethiopia," IMF Working Papers 03/232, International Monetary Fund.
- 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.
- 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.
- James M. Poterba, 1989.
"Lifetime Incidence and the Distributional Burden of Excise Taxes,"
NBER Working Papers
2833, National Bureau of Economic Research, Inc.
- 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.
- Poterba, J.M., 1989. "Lifetime Incidence And The Distributional Burden Of Excise Taxes," Working papers 510, Massachusetts Institute of Technology (MIT), Department of Economics.
- David Locke Newhouse & Irene Yackovlev & Robert Gillingham, 2008. "The Distributional Impact of Fiscal Policy in Honduras," IMF Working Papers 08/168, International Monetary Fund.
- Barthold, Thomas A., 1993. "How Should We Measure Distribution?," National Tax Journal, National Tax Association, vol. 46(3), pages 291-99, September.
- repec:ttp:itpwps:0306 is not listed on IDEAS
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 references are entirely missing, you can add them using this form.