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Impuestos negativos a la renta en Uruguay: ¿una política redistributiva alternativa?

Author

Listed:
  • Mery Ferrando

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Cristian Pérez

    ()

  • Gonzalo Salas

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

In this research we evaluate an alternative redistributive scheme for Uruguay. Specifically,we analyze the impacts on equity and efficiency of substituting the new conditional cash transfer program (Asignaciones Familiares – AFAM-) and direct taxes (personal income tax–IRFP-) by a negative income tax (INR), holding fiscal budget constant. Using microsimulations that incorporate behavioral changes, we analyze the effects of this policy change on labor supply, poverty levels and income distribution. The results show that the introduction of an INR, as designed in this study, would not have a redistributive impact higher than the current scheme. Moreover, in terms of efficiency, the policy change would have practically no impact on labor supply.

Suggested Citation

  • Mery Ferrando & Cristian Pérez & Gonzalo Salas, 2010. "Impuestos negativos a la renta en Uruguay: ¿una política redistributiva alternativa?," Documentos de Trabajo (working papers) 10-02, Instituto de Economía - IECON.
  • Handle: RePEc:ulr:wpaper:dt-02-10
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    References listed on IDEAS

    as
    1. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
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    3. Gonzalo Salas, 2009. "Diseños alternativos de un impuesto negativo a la renta en Uruguay," Documentos de Trabajo (working papers) 09-04, Instituto de Economía - IECON.
    4. Robert A. Moffitt, 2003. "The Negative Income Tax and the Evolution of U.S. Welfare Policy," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 119-140, Summer.
    5. Ramses H. Abul Naga & Christophe Kolodziejczyk & Tobias Müller, 2008. "The Redistributive Impact Of Alternative Income Maintenance Schemes: A Microsimulation Study Using Swiss Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(2), pages 193-219, June.
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    More about this item

    Keywords

    Negative income tax; labor supply; income;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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