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Commitment to Equity Assessment (CEQ): Estimating the Incidence of Social Spending, Subsidies and Taxes Handbook

Author

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  • Nora Lustig

    (Department of Economics, Tulane University)

  • Sean Higgins

    (Department of Economics, Tulane University)

Abstract

This handbook presents a step-by-step guide to applying the incidence analysis used in the multi-country project CEQ. We define the pre- and post-net transfers income concepts, discuss the methodological assumptions used to construct them, explain how taxes, subsidies and transfers should be allocated at the household level, and suggest what to do when the information on taxes and transfers is not included in the household survey. We also describe the indicators that are used to assess the distributive impact, progressivity and effectiveness of social spending, subsidies and taxes. In addition, we present sample Stata code for producing some of the indicators.

Suggested Citation

  • Nora Lustig & Sean Higgins, 2012. "Commitment to Equity Assessment (CEQ): Estimating the Incidence of Social Spending, Subsidies and Taxes Handbook," Working Papers 1219, Tulane University, Department of Economics.
  • Handle: RePEc:tul:wpaper:1219
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    File URL: http://repec.tulane.edu/RePEc/pdf/tul1219.pdf
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    3. Nora Lustig & George Gray Molina & Sean Higgins & Miguel Jaramillo & Wilson Jimenez & Veronica Paz & Claudiney Pereira & Carola Pessino & John Scott & Ernesto Yanez, 2012. "The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico and Peru: A Synthesis of Results," Working Papers 1216, Tulane University, Department of Economics.
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    10. Nora Lustig & Sean Higgins, 2012. "Fiscal Incidence, Fiscal Mobility and the Poor: a New Approach," Working Papers 265, ECINEQ, Society for the Study of Economic Inequality.
    11. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 23-47, March.
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    Cited by:

    1. Francisco G. Ferreira & Nora Lustig & Daniel Teles, 2015. "Appraising cross-national income inequality databases: An introduction," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 497-526, December.
    2. Sean Higgins, Nora Lustig, Whitney Ruble, and Timothy Smeeding, 2014. "Comparing the Incidence of Taxes and Social Spending in Brazil and the United States - Working Paper 360," Working Papers 360, Center for Global Development.
    3. Nancy Birdsall & Christian J. Meyer, 2015. "The Median is the Message: A Good Enough Measure of Material Wellbeing and Shared Development Progress," Global Policy, London School of Economics and Political Science, vol. 6(4), pages 343-357, November.
    4. Branko Milanovic & Sean Higgins & Nora Lustig & Whitney Ruble & Timothy M. Smeeding, 2016. "Comparing the Incidence of Taxes and Social Spending in Brazil and the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62, pages 22-46, August.
    5. Inchauste, Gabriela & Lustig, Nora & Maboshe, Mashekwa & Purfield, Catriona & Woolard, Ingrid, 2015. "The distributional impact of fiscal policy in South Africa," Policy Research Working Paper Series 7194, The World Bank.
    6. Nora Lustig & Florencia Amábile & Marisa Bucheli & George Gray Molina & Sean Higgins & Miguel Jaramillo & Wilson Jiménez Pozo & Veronica Paz Arauco & Claudiney Pereira & Carola Pessino & Máximo Rossi , 2013. "The impact of taxes and social spending on inequality and poverty in Argentina, Bolivia, Brazil, Mexico, Peru and Uruguay: An overview," Working Papers 315, ECINEQ, Society for the Study of Economic Inequality.
    7. Florencia Amábile & Marisa Bucheli & Máximo Rossi, 2014. "Inequality and Poverty in Uruguay by Race: the Impact of Fiscal Policies," Commitment to Equity (CEQ) Working Paper Series 19, Tulane University, Department of Economics, revised Feb 2015.
    8. Bussolo,Maurizio & Simone,Schotte & Matytsin,Mikhail, 2015. "Population aging and households? saving in the Russian Federation," Policy Research Working Paper Series 7443, The World Bank.
    9. Nora Lustig & Carola Pessino, 2013. "Social spending and income redistribution in Argentina during the 2000s: The rising noncontributory pensions," Commitment to Equity (CEQ) Working Paper Series 1305, Tulane University, Department of Economics, revised Aug 2013.
    10. Cabrera, Maynor & Lustig, Nora & Morán, Hilcías E., 2015. "Fiscal Policy, Inequality, and the Ethnic Divide in Guatemala," World Development, Elsevier, vol. 76(C), pages 263-279.
    11. World Bank, "undated". "Social Gains in the Balance : A Fiscal Policy Challenge for Latin America and the Caribbean [Ganancias sociales en la balanza : un desafio de la politica fiscal para América Latina y el Caribe]," World Bank Publications - Reports 17198, The World Bank Group.
    12. Matěj Bajgar & Petr Janský, 2015. "Skutečná kupní síla v krajích České republiky: zohlednění regionální cenové hladiny a struktury pracovní síly [Purchasing Power in the Regions: Reflecting Price Levels and Employment Structures]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(7), pages 860-876.
    13. Augusto de la Torre & Eduardo Levy Yeyati & Guillermo Beylis & Tatiana Didier & Carlos Rodriguez Castelan & Sergio Schmukler, "undated". "Inequality in a Lower Growth Latin America : LAC Semiannual Report, October 2014," World Bank Publications - Reports 20413, The World Bank Group.

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    More about this item

    Keywords

    handbook; taxes and transfers; fiscal incidence; poverty; inequality;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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