Nora Lustig 
Commitment to Equity Handbook [EPUB ebook] 
Estimating the Impact of Fiscal Policy on Inequality and Poverty

VOLUME 1

List of Illustrations

Foreword

François Bourguignon

Acknowledgments

CEQ Handbook

Nora Lustig

Abstracts

Introduction

1 About Volume 1: Fiscal Incidence Analysis: Methodology, Implementation, and Applications

2 The Relevance of Fiscal Incidence Analysis in Today’s World

3 Fiscal Incidence in Practice: The Commitment to Equity (CEQ) Assessment

4 Main Messages

5 Organization of Volume 1

6 Implementing a CEQ Assessment: How to Use Volume 1

7 CEQ Assessment: Data Requirements

8 About Volume 2: Methodological Frontiers in Fiscal Incidence Analysis

9 About the CEQ Institute

10 About the CEQ Data Center on Fiscal Redistribution

VOLUME 2

List of Illustrations

Abstracts

Alternative Methods to Value Transfers in Kind:

Health, Education, and Infrastructure

Chapter 1: The Effect of Government Health Expenditure on Income

Distribution: A Comparison of Valuation Methods in Ghana

by Jeremy Barofsky and Stephen D. Younger

Introduction

1 What’s Wrong with the Cost of Provision?

2 Using Healthcare Consumers’ Choices to Estimate the Compensating Variation for Public Healthcare Expenditures

3 The Health Outcomes Approach

4 Summary: Choosing among the Options

5 Insurance Value of Financial Risk Reduction

6 Conclusion

Appendix 1A

1 Using the Spectrum Policy Models Software

2 Financial Risk Protection with Consumption Floor Proportional to Income

3 Concentration Curves by Valuation Method

4 Using Willingness and Ability to Pay by Matching Publicly Funded Health Services to Private Health Services

5 Data and Do-Files for Replication

Chapter 2: The Market Value of Public Education: A Comparison of

Three Valuation Methods

by Sergei Soares

Introduction

1 First Method: Schooling Is Worth What It Costs the State to Provide It

2 Second Method: Schooling Is Worth What the Labor Market Says It Is Worth

3 Third Method: Schooling Is Worth What the Private Education Market Says It Is Worth

4 Comparison of Results

5 Conclusion

Chapter 3: Redistribution through Education: Assessing the Long-Term

Impact of Public Spending

by Sergio Urzua

Introduction

1 The Conceptual Framework

2 The Value of Public Education Spending to Its Beneficiaries

3 Chile and Ghana: Differences and Similarities 77

4 Empirical Analysis

5 Conclusions 105

Appendix 3A Dynamic Fiscal Incidence of Public Spending

in Education 111

1 The Recursive Problem

2 Intertemporal Fiscal Incidence Analysis

Appendix 3B Instrumental Variable

Chapter 4: The Market Value of Owner-Occupied Housing and Public Infrastructure Services

by Sergei Soares

Introduction

1 Literature

2 Methodology

3 Imputing Rents and Public Infrastructure Services for 2015

4 Comparisons with 2005 and 1995

5 Conclusions

Fiscal Incidence of Corporate Taxes

Chapter 5: Taxes, Transfers, and Income Distribution in Chile: Incorporating Undistributed Profits

by Bernardo Candia and Eduardo Engel

Introduction

1 Tax Regime and Social Spending in Chile

2 Data, Methodology, and Assumptions

3 Results

4 Marginal Contribution and Shapley Value

5 Distributive Effects of the 2014 Tax Reform

6 Conclusions

Redistributive Impact of Contributory Pensions

Chapter 6: The Within-System Redistribution of Contributory Pension Systems: A Conceptual Framework and Empirical Method of Estimation

by Carlos Grushka

Introduction

1 Are Pension Systems Tax-Transfers or Deferred Wages Schemes?

2 Redistribution, Neutrality, and Actuarial Fairness

3 Social Security Pensions in Argentina

4 How Redistribution Works for Social Security Pensions in Argentina

5 An Alternative Methodological Framework

6 Conclusion

Fiscal Redistribution and Sustainability

Chapter 7: Intertemporal Sustainability of Fiscal Redistribution: A Methodological Framework

by Jose Maria Fanelli

Introduction

1 Income Concepts, Fiscal Redistributions, and Sustainability

2 Fiscal Redistributions, Demography, and Wealth Constraints

3 Fiscal Redistributions and Income Strata

4 Concluding Remarks

Appendix 7A Pensions as Deferred Income

1 Income Strata and Deferred Income

2 Private Wealth and Forced Savings

3 Demography and Wealth

Appendix 7B Nomenclature

Chapter 8: Fiscal Redistribution, Sustainability, and Demography in Latin America

by Ramiro Albrieu and Jose Maria Fanelli

Introduction

1 Fiscal Policy and Redistribution Outcomes

2 Fiscal Redistributions and Debt Sustainability

3 The Future Sustainability of Fiscal Policy in Aging Societies

4 Conclusion

Political Economy of Redistribution

Chapter 9: On the Political Economy of Redistribution and Provision of Public Goods

by Stefano Barbieri and Koray Caglayan

Introduction

1 The Meltzer and Richard (1981) Pure Redistribution Model

2 Assumptions of Linear Tax Rates and the Importance of Public Provision

3 The Provision of Public Goods Using a Median Voter Framework

4 Extension to Nonlinear Tax Schemes

5 The Provision of Public Goods Financed with a Flat Tax with Exemptions

6 Taxation and Redistribution Models without Functional Form Assumptions

7 Conclusion

Appendix 9A Technical Derivations of the Meltzer and Richard (1981) Model

1 Response of Consumption to Government Transfers

2 Response of Pretax Income to Productivity

Appendix 9B Technical Derivations of Lambert (2001)

About the Authors

Index

Nora Lustig is Samuel Z. Stone Professor of Latin American Economics and founding Director of the Commitment to Equity Instituteat Tulane University where she researches the impact of taxation and social spending on inequality and poverty, and the determinants of inequality. Her more recent work has focused on the short- and long-term impacts of COVID-19 on educational mobility, inequality, and poverty.