CIPR | Center For Inter-American Policy & Research

Tulane University

CEQ Working Paper No 14: Measuring Impoverishment: An Overlooked Dimension of Fiscal Incidence


Measuring Impoverishment: An Overlooked Dimension of Fiscal Incidence
Working Paper No. 14

A working document by:
Nora Lustig
Tulane University
Sean Higgins
Tulane University

Abstract
The effect of taxes and benefits on the poor is usually measured using standard poverty and inequality indicators, stochastic dominance tests, and measures of progressivity and horizontal inequity. However, these measures can fail to capture an important aspect: that some of the poor are made poorer (or some of the non-poor made poor) by the tax-benefit system. We call this impoverishment and formally establish the relationships between impoverishment, stochastic dominance tests, horizontal inequity, and progressivity measures. The directional mobility literature provides a useful framework to measure impoverishment. We propose using a transition matrix and income loss matrix, and establish a mobility dominance criterion to compare alternate tax-benefit systems. We illustrate with data from Brazil.

Access the working document here:
Updated April 2013
CEQ Working Paper No 14: Measuring Impoverishment: An Overlooked Dimension of Fiscal Incidence

LATEST SITE UPDATES

NEWS

PEOPLE

RESOURCES

EVENTS

All Events

Upcoming Events

Read Across the Americas Summer Program at the Algiers Regional Branch

View Full Event Description

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