CIPR | Center For Inter-American Policy & Research

Tulane University

CEQ Working Paper No 11: Social Spending, Taxes and Income Redistribution in Paraguay


Social Spending, Taxes and Income Redistribution in Paraguay
Working Paper No. 11

A working document by:
Sean Higgins
Tulane University
Nora Lustig
Tulane University
Julio Ramirez
CADEP
Billy Swanson
UC Davis

Abstract
How much redistribution does Paraguay accomplish through social spending and taxes? How progressive are revenue collection and social spending? Using a standard fiscal incidence analysis, we quantify the reduction in inequality and poverty in Paraguay across income concepts, and contextualize these results by placing Paraguay in comparative perspective with other Latin American countries. Paraguay achieves a relatively small reduction in inequality, even when in-kind education and health benefits are taken into account. Direct taxes are progressive, indirect taxes are regressive, and total taxes are regressive. Social spending is progressive in relative terms, but less so than in any of the other countries analyzed.

Access the working document here:
Updated November 2013
CEQ Working Paper No 11: Social Spending, Taxes and Income Redistribution in Paraguay

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