2008年-世界发展银行全球_Assessing_the_Redistributive_Effect_of_Fiscal_Policy_72页_350kb

Summary of "Assessing the Redistributive Effect of Fiscal Policy"

Core Content

This paper, authored by B. Essama-Nsah and published by the World Bank in 2008, explores the redistributive effects of fiscal policy, focusing on taxation and public spending. It reviews the concepts, methods, and modeling approaches used in fiscal incidence analysis, which is the study of how the burden of taxes and benefits of public expenditure are distributed across different socioeconomic groups.

The paper emphasizes the importance of individual behavior and social interactions in determining the effective distribution of fiscal policy impacts. It also highlights the role of equity in evaluating the fairness of fiscal systems, particularly through the lens of progressivity and deadweight loss.

Main Points

1. Fiscal Incidence and Equity

• Fiscal incidence analysis examines who benefits from public spending and who bears the burden of taxation.
• Equity is a key concern, and the paper discusses vertical equity (fairness based on ability to pay) and horizontal equity (equal treatment of similar individuals).
• Progressivity is defined as a tax system where the average tax burden increases with income, thus favoring the poor.

2. Tax Burden and Incidence

• The burden of taxation is the change in individual and social welfare due to a tax system.
• Statutory incidence refers to the legal obligation to pay, while economic incidence refers to the actual impact on well-being.
• The degree of tax shifting depends on the elasticity of supply and demand, and market structure.
• In competitive markets, the more inelastic side (e.g., consumers or producers) bears a larger share of the tax burden.

3. Progressivity and Measurement

• A progressive tax is one where the tax-to-income ratio increases with income.
• Progressivity can be measured using the disproportionality effect or the equalizing effect.
• Equivalent variation (EV) and compensating variation (CV) are used to measure the impact of indirect taxes on welfare.
• The concentration curve helps assess the disproportionality of the tax burden, showing the share of tax paid by the lowest percentiles of the population.

4. Public Expenditure and Redistribution

• Public expenditure can also have a redistributive effect, especially when it targets specific groups or services.
• The distributional impact of public spending depends on the type and level of expenditure, as well as the efficiency of implementation.
• The paper highlights the need for behavioral responses to be considered in both tax and spending analysis.

5. Methodological Approaches

• The paper reviews various methodological approaches:
  • Simple reduced form regression
  • Microsimulation models (envelope and discrete choice models)
  • Computable general equilibrium (CGE) modeling
  • Linking CGE models with microsimulation models
• These models help in constructing counterfactuals and assessing the social desirability of fiscal policy outcomes.

Key Information

• Equity is central to the design of fiscal policy and is pursued both for intrinsic and instrumental reasons.
• Progressivity is a key indicator of fairness, but it comes with welfare costs due to distorted incentives.
• Tax incidence is influenced by market structure, elasticity, and institutional arrangements.
• Public spending can be a powerful tool for redistribution, but its effectiveness depends on targeting, efficiency, and behavioral responses.
• Country-specific cases such as Chile are used to illustrate the distributional impact of taxes.
• The concentration curve and Lorenz curve are used to visually assess inequality and redistributive effects.

Country Case: Chile (1996)

• The tax burden is disproportionately borne by the poor.
• The second decile pays the highest percentage of its income in taxes (16%) compared to the wealthiest decile (12%).
• Income tax in Chile has no impact on the poorest deciles.
• VAT and other taxes have a more significant impact on lower-income groups.
• The distribution of the tax burden is influenced by the structure of the tax system and behavioral responses.

Policy and Methodological Lessons

• Behavioral responses to fiscal policy must be explicitly modeled to avoid erroneous policy recommendations.
• Social desirability of tax and spending systems is assessed based on progressivity and deadweight loss.
• Fiscal incidence analysis should be adapted to developing countries, which may have informal sectors, credit rationing, and tax evasion.
• Microsimulation and CGE models are useful tools for analyzing the distributional impact of fiscal policy and for policy evaluation.

Conclusion

This paper provides a comprehensive overview of the methodological tools used to assess the redistributive effects of fiscal policy. It underscores the importance of considering individual and social behavior in evaluating how taxes and public spending affect equity and efficiency in society. The analysis is grounded in theoretical frameworks and supported by empirical examples, particularly from Chile, to illustrate the practical implications of fiscal incidence studies.