Falling Inequality in Latin America: The Role of Fiscal Policy

2020 ◽  
Vol 52 (2) ◽  
pp. 317-341 ◽  
Author(s):  
Judith Clifton ◽  
Daniel Díaz-Fuentes ◽  
Julio Revuelta
Keyword(s):  
Latin America ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Public Spending ◽  
Income Taxes ◽  
Personal Income ◽  
Recent Scholarship ◽  
Social Contributions ◽  
Urban Level

AbstractLatin America is one of the world's only regions to have witnessed a fall in income inequality during the 2000s. This paper evaluates the role fiscal policy played in this change. Recent scholarship has examined this in individual countries; lacking is a regional perspective. We examine the effects of nine fiscal instruments on income inequality in 17 countries between 1990 and 2014. Fiscal policy had a positive – albeit small – effect in reducing income inequality, especially from 2003, working best at the urban level. Public spending on education, personal income taxes and social contributions were especially instrumental in reducing income inequality.

scholarly journals LITERATURE REVIEW IMPACT OF TAX AND SUBSIDY ON REDUCING INCOME INEQUALITY IN INDONESIA

2017 ◽  
Vol 1 (1) ◽  
pp. 118-123
Author(s):  
Sakti Prabowo
Keyword(s):  
Fiscal Policy ◽  
Income Inequality ◽  
Literature Review ◽  
Income Taxes ◽  
Social Spending ◽  
The Government ◽  
Direct Tax ◽  
Neutral Effect

Many countries have used fiscal policy Tax and subsidy as a tool to reduce income inequality and many of them have succeeded to achieve it. In contrast, tax and subsidy in Indonesia tend to have a neutral effect on inequality today. This research aims to identify the factors caused Indonesia fiscal policy doesn't have a significant impact on income inequality reduction and what steps should be taken by the government to improve the role of fiscal policy in order to reduce income inequality. From the literature review, this paper finds that Indonesia should improve the quality of public spending.  Indonesia government should Prioritize social spending and infrastructure to improve the fiscal policy role to reduce inequality. In addition, increasing direct tax such as personal income taxes should be done in order to make it more effective.

scholarly journals Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach

2021 ◽  
Author(s):  
Diogo Correia ◽  
Ricardo Barradas
Keyword(s):  
Time Series ◽  
Income Inequality ◽  
Economic Performance ◽  
Labour Productivity ◽  
Personal Income ◽  
Integration Process ◽  
Income Share ◽  
Portuguese Economy ◽  
The Portuguese Economy

The aim of this paper is to conduct a time series econometric analysis in order to empirically evaluate the role of financialisation in the slowdown of labour productivity in Portugal during the period from 1980 to 2017. During that time, the Portuguese economy faced a financialisation phenomenon due to the European integration process and the corresponding imposition of a strong wave of privatisation, liberalisation and deregulation of the Portuguese financial system. At the same time, Portuguese labour productivity exhibited a sustained downward trend, which seems to contradict the well-entrenched mainstream hypothesis on the finance–productivity nexus. Based on the post-Keynesian literature, we identify four channels through which the phenomenon of financialisation has impaired labour productivity, namely weak economic performance, the fall in labour’s share of income, the rise of inequality in personal income and an intensification of the degree of financialisation. The paper finds that lagged labour productivity, economic performance and labour income share positively impact labour productivity in Portugal, while personal income inequality and the degree of financialisation negatively impact labour productivity in Portugal. The paper also finds that the main triggers for the slowdown of labour productivity in Portugal are the degree of financialisation and personal income inequality over the last decades.

Reforming China's Public Finances to Sustain Growth

2014 ◽  
Vol 06 (02) ◽  
pp. 71-85
Author(s):  
Shuanglin LIN ◽  
Sarah Y TONG
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Local Government ◽  
Income Inequality ◽  
Government Expenditure ◽  
Public Spending ◽  
Government Debt ◽  
Environmental Problems ◽  
Policy Initiatives ◽  
Taxation System

China's public finance is characterised by a pro-growth taxation system, growth enhancing government expenditure and an expansionary fiscal policy. However, reforms are needed to tackle rising income inequality and worsening social and environmental problems, including more public spending and more progressive taxes. Measures are also needed to resolve rising local government debt. The recently concluded Third Plenum has made these its top priorities and announced various policy initiatives.

Improving the fiscal policy of the state with the help of information technology

2017 ◽  
Vol 32 (3) ◽  
pp. 103-116
Author(s):  
E. E. Akimkina ◽  
Т. E. Abbasov
Keyword(s):  
Information Technology ◽  
Fiscal Policy ◽  
Russian Federation ◽  
Public Spending ◽  
The State ◽  
Fiscal Transparency ◽  
The Russian Federation ◽  
Practical Analysis

The theoretical aspects of fiscal policy are analyzed, its concept, goals, instruments and regulators are disclosed; A practical analysis of the fiscal policy carried out by the Russian Federation for the period 2008-2015 is carried out, its strengths and weaknesses are outlined; It is shown that it is necessary to increase the role of fiscal transparency in increasing the efficiency of public spending; Ways to increase fiscal transparency through information technology.

Income distribution gains will slow in Latin America

2016 ◽  
Keyword(s):  
Latin America ◽  
Income Inequality ◽  
Labour Market ◽  
Gini Coefficient ◽  
Income Taxes ◽  
Market Outcomes ◽  
Content Type ◽  
Income Share ◽  
Fiscal Constraints ◽  
Labour Market Outcomes

Subject Income inequality in Latin America. Significance Between 2003 and 2013, income inequality declined across Latin America, although the income share of the wealthy remained high. A combination of positive labour market outcomes and more inclusive social policies contributed to these results. Since 2013, however, the gains have slowed, and inequality has again increased in some countries. Impacts Improvements in the Gini coefficient are slowing across the region; in Bolivia and Mexico, inequality has again risen. Further deterioration of public services and increasing segmentation in both social delivery and labour market outcomes appears likely. A shift to the centre-right and fiscal constraints may reduce efforts to implement progressive income taxes or protect labour rights.

Sign in / Sign up

Export Citation Format

Share Document