The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries write by Adrian Peralta-Alva. This book was released on 2018-06-13. The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries available in PDF, EPUB and Kindle. We quantitatively investigate the macroeconomic and distributional impacts of fiscal consolidations in low-income countries (LICs) through value added tax (VAT), personal income tax (PIT), and corporate income tax (CIT). We extend the standard heterogeneous agents incomplete markets model by including multiple sectors and rural-urban distinction to capture salient features of LICs. We find that overall, VAT has the least efficiency costs but is highly regressive, while PIT impacts the economy in the opposite way with CIT staying in between. Cash transfers targeting rural households mitigate the negative distributional impacts of VAT most effectively, while public investment leads to little redistribution.
The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies
The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies write by Davide Furceri. This book was released on 2017-10-20. The Macroeconomic (and Distributional) Effects of Public Investment in Developing Economies available in PDF, EPUB and Kindle. This paper provides new empirical evidence of the macroeconomic effects of public investment in developing economies. Using public investment forecast errors to identify unanticipated changes in public investment, the paper finds that increased public investment raises output in the short and medium term, with an average short-term fiscal multiplier of about 0.2. We find some evidence that the effects are larger: (i) during periods of slack; (ii) in economies operating with fixed exchange rate regimes; (iii) in more closed economies; (iv) in countries with lower public debt; and (v) in countries with higher investment efficiency. Finally, we show that increases in public investment tend to lower income inequality.
The Distributional Effects of Fiscal Consolidation
The Distributional Effects of Fiscal Consolidation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Distributional Effects of Fiscal Consolidation write by Laurence M. Ball. This book was released on 2013-06-21. The Distributional Effects of Fiscal Consolidation available in PDF, EPUB and Kindle. This paper examines the distributional effects of fiscal consolidation. Using episodes of fiscal consolidation for a sample of 17 OECD countries over the period 1978–2009, we find that fiscal consolidation has typically had significant distributional effects by raising inequality, decreasing wage income shares and increasing long-term unemployment. The evidence also suggests that spending-based adjustments have had, on average, larger distributional effects than tax-based adjustments.
The Distributional Effects of Government Spending Shocks in Developing Economies
The Distributional Effects of Government Spending Shocks in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Distributional Effects of Government Spending Shocks in Developing Economies write by Davide Furceri. This book was released on 2018-03-14. The Distributional Effects of Government Spending Shocks in Developing Economies available in PDF, EPUB and Kindle. We construct unanticipated government spending shocks for 103 developing countries from 1990 to 2015 and study their effects on income distribution. We find that unanticipated fiscal consolidations lead to a long-lasting increase in income inequality, while fiscal expansions lower inequality. The results are robust to several measures of income distribution and size of the fiscal shocks, to an alternative identification strategy, across expansions and recessions and across country groups (low-income countries versus emerging markets). An additional contribution of the paper is the computation of the medium-term inequality multiplier. This is on average about 1 in our sample, meaning that a cumulative decrease in government spending of 1 percent of GDP over 5 years is associated with a cumulative increase in the Gini coefficient over the same period of about 1 percentage point. The multiplier is larger for total government expenditure than for public investment and consumption (with the former having larger effect), likely due to the redistributive role of transfers. Finally, we find that (unanticipated) fiscal consolidations lead to an increase in poverty.
Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy
Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy write by Jaejoon Woo. This book was released on 2013-09-17. Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy available in PDF, EPUB and Kindle. The 2007-09 Great Recession has led to an unprecedented increase in public debt in many countries, triggering substantial fiscal adjustments. What are the distributional consequences of fiscal austerity measures? This is an important policy question. This paper analyzes the effects of fiscal policies on income inequality in a panel of advanced and emerging market economies over the last three decades, complemented by a case study of selected consolidation episodes. The paper shows that fiscal consolidations are likely to raise inequality through various channels including their effects on unemployment. Spending-based consolidations tend to worsen inequality more significantly, relative to tax-based consolidations. The composition of austerity measures also matters: progressive taxation and targeted social benefits and subsidies introduced in the context of a broader decline in spending can help offset some of the adverse distributional impact of consolidation. In addition, fiscal policy can favorably influence long-term trends in both inequality and growth by promoting education and training among low- and middle-income workers.
