You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publishing Institution Center for Global Development Remove constraint Publishing Institution: Center for Global Development Political Geography Global Focus Remove constraint Political Geography: Global Focus Publication Year within 5 Years Remove constraint Publication Year: within 5 Years Topic International Political Economy Remove constraint Topic: International Political Economy
- Author: Ali Enami, Nora Lustig, Rodrigo Aranda
- Publication Date: 01-2017
- Content Type: Working Paper
- Institution: Center for Global Development
- Abstract: This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income remains unchanged. We show that in a world with more than a single fiscal instrument, the simple rule that progressive taxes or transfers are always equalizing not necessarily holds, and offer alternative rules that survive a theoretical scrutiny. In particular, we show that the sign of the marginal contribution unambiguously predicts whether a tax or a transfer is equalizing or not.
- Topic: International Political Economy, International Trade and Finance
- Political Geography: Global Focus