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Fiscal Incidence, Fiscal Mobility and the Poor- A New Approach

Working Document: Fiscal Incidence, Fiscal Mobility and the Poor- A New Approach
by Lustig, Nora and Sean Higgins
April 2012

Abstract
Taxes and transfers can have significant impacts on poverty and inequality. All standard measures are by definition anonymous in the sense that we do not know the identity of winners and losers. That a given combination of taxes and transfers makes some of the poor poorer, however, may be important information to incorporate into a fiscal incidence analysis. The directional mobility literature provides a useful framework to identify which individuals are adversely/favorably impacted by a particular policy. This paper introduces a “fiscal mobility matrix” to identify winners and losers. We show that taxes and transfers can lower inequality and poverty (including the severity of the poor) but still make a subgroup of the poor worse off. We use Brazilian data to illustrate how indirect taxes make around 11 percent of the non-poor poor, 15 percent of the moderate poor extremely poor and 4 percent of the extremely poor “ultra-poor” despite any cash transfers they receive, even when standard poverty and inequality indicators decline and overall taxes are progressive.

Fiscal Incidence, Fiscal Mobility and the Poor- A New Approach, Updated April 2012

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Latin American Graduate Oraganization (LAGO) 2018 Conference: Call for Proposals

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The Latin American Graduate Organization will be hosting its 2018 Latin American Studies Conference titled Thinking of the Future: Expanding the possible in the Americas (Pensando en el porvenir: Expandiendo lo posible en las Américas) February 23 – 25, 2018, at Tulane University, in New Orleans, Louisiana.

This year, the conference topic is meant to challenge academics and activists to move beyond critiques and recommendations of how to address modern days issues, and instead articulate a vision of and for the future.

The LAGO Conference welcomes all disciplines and all approaches, as long as the project attempts to grapple with the idea of building something better. This is a Latin American Studies Conference, but creative writers, journalists, artists, performers, organizers, lawyers and healthcare providers as well as graduate students and other academics are welcome. Proposals are accepted in Spanish, Portuguese, Haitian Creole, and English.

Deadlines: Abstracts of papers and projects are due November 25, 2017. Abstracts of papers or project descriptions must not exceed 300 words.

Please contact lago.tulane@gmail.com with questions. For more information, visit the official conference website.