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CEQ Working Paper No 4: Fiscal Incidence, Fiscal Mobility and the Poor
- CEQ Working Paper Series
- Commitment to Equity
- fiscal incidence
- taxes and transfers
- inequality
- poverty
- redistribution
- mobility
- Latin America
Fiscal Incidence, Fiscal Mobility and the Poor
Working Paper No. 4
A working document by:
Nora Lustig
Samuel Z. Stone Professor of Latin American Economics, Tulane University and Non-resident Senior Fellow at the Center for Global Development and Inter-American Dialogue
Sean Higgins
Doctoral student of PhD in Economics, Tulane University
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 poverty) 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.
Access the working document here:
Updated January 2013
CEQ Working Paper No 4: Fiscal Incidence, Fiscal Mobility and the Poor
RELATED
Ludovico Feoli
Permanent Researcher and CEO, CIAPA, Executive Director - Center for Inter-American Policy and Research at Tulane University
Nora Lustig
Professor - Economics, Samuel Z. Stone Chair of Latin American Economics
CEQ Working Paper No 1: Commitment to Equity (CEQ) Handbook
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- The New York Times recognizes the literary mastery of Greenleaf Scholar-in-Residence Gabriela Alemán
- Kellogg Institute Selects Dr. Oliveros as a 2019-2020 Visiting Fellow
- Tulane University School of Public Health and Tropical Medicine part of consortium working to eliminate malaria in Hispaniola
- Tulane historian Kris Lane writes essay for Zócalo on Bolivian silver mining and capitalism
- Laura Rosanne Adderley discusses diversity-related courses at "Future of Gen Ed" event
- Students Participate in the First Annual Latin American and Latinx Studies Symposium at Rollins College
EVENTS
- Latin American Library Greenleaf Fellow Lirio Gutiérrez Rivera to present research on violence and migration of Hondurans
- Explore the Stories and Creatures of Latin America: Pebbles Center collaboration with the Audubon Nature Institute
- Read Across the Americas Summer Program at the Children's Resource Center
- Read Across the Americas Summer Program at the Algiers Regional Branch
- Globalizing American Studies 2.0 Symposium at Tulane University
- Fake News has a Mode of Truth: Computational Propaganda and Digital Populism in Brazil
All Events
Upcoming Events
Read Across the Americas Summer Program at the Children's Resource Center
Join us every first and third Saturday at 10:30 am for a bilingual storytime for kids ages 2 – 10. The program is part of an initiative between Tulane University’s Stone Center for Latin American Studies and the New Orleans Public Library called the Pebbles Center.
DATES AND TIMES
Saturday, June 1
10:30 AM
Saturday, June 15
10:30 AM
Saturday, July 6
10:30 AM
Saturday, July 20
10:30 AM
Read Across the Americas Summer Program at the Algiers Regional Branch
Join us every Wednesday at 10:30 am for a bilingual storytime for kids ages 2 – 10. The program is part of an initiative between Tulane University’s Stone Center for Latin American Studies and the New Orleans Public Library called the Pebbles Center. This summer we will explore the environment and diverse geography of Latin America. Bring your favorite jungle animal and be prepared to learn some Spanish as we embark on an adventure through the Americas. This program provides a reading list of recommended titles for all ages to explore Latin America on your own this summer. If you read all books, you will be eligible for a special award offered during Hispanic Heritage month at the annual Celebración Latina held at the Audubon Zoo.
DATES AND TIMES
Wednesday, June 5
10:30 AM
Wednesday, June 12
10:30 AM
Wednesday, June 19
10:30 AM
Wednesday, June 26
10:30 AM
Wednesday, July 3
10:30 AM
Wednesday, July 10
10:30 AM
Wednesday, July 17
10:30 AM
Wednesday, July 24
10:30 AM
Wednesday, July 31
10:30 AM
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