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  1. What are the poverty and inequality impacts of fiscal policy in Turkey?
    Author: Cuevas, P. Facundo; Lucchetti, Leonardo; Nebiler, Metin
    Published: June 2020
    Publisher:  World Bank Group, Poverty and Equity Global Practice, [Washington, DC, USA]

    Fiscal policy is central to not only macroeconomic stability and growth, but also to poverty and inequality reduction. This paper provides the most comprehensive assessment of the distributional incidence of Turkey's fiscal policy to date. It... more

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    Fiscal policy is central to not only macroeconomic stability and growth, but also to poverty and inequality reduction. This paper provides the most comprehensive assessment of the distributional incidence of Turkey's fiscal policy to date. It analyzes the combined and individual incidence of direct and indirect taxes, transfers, and social spending and benchmarks Turkey's achievements against peer countries. The results show that fiscal policy significantly reduces income inequality in Turkey, driven by social spending on education and health, and complemented by direct taxes and transfer schemes that countervail the inequality-increasing impact of indirect taxes. At the bottom of the income distribution, targeted transfers are insufficient to compensate for the effect of taxes, resulting in net increases in poverty. In the context of upper-middle-income countries, Turkey's performance is below the median. This is driven by the relatively larger negative impacts of indirect taxes and the more limited positive impacts of direct transfers and taxes. From a policy perspective, the paper contributes to identifying entry points for improving the equity impact of the fiscal package. Among these, targeting the minimum subsistence allowance (AGI) program toward the poor could be an efficient way forward. More broadly, the study represents a platform to simulate the distributional implications of a variety of fiscal changes to inform stakeholders and the policy debate

     
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    Source: Union catalogues
    Language: English
    Media type: Book
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    Series: Policy research working paper ; 9300
    World Bank E-Library Archive
    Subjects: fiscal policy; incidence; social spending; transfers; taxes; poverty; inequality; Turkey
    Scope: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  2. The effect of course shutouts on community college students: evidence from waitlist cutoffs
    Author: Robles, Silvia; Gross, Max; Fairlie, Robert W.
    Published: October 2020
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    One frequently cited yet understudied channel through which funding levels impact college students is course availability - colleges are often forced to respond to budgetary pressure by reducing course offerings. We provide the first causal evidence... more

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    One frequently cited yet understudied channel through which funding levels impact college students is course availability - colleges are often forced to respond to budgetary pressure by reducing course offerings. We provide the first causal evidence on this mechanism at a community college, using administrative course registration data and a novel research design that exploits discontinuities in course admissions created by waitlists. Community colleges enroll about half of U.S. undergraduates and over half of minority students in public colleges. The impacts of course availability in this setting may be especially salient relative to four-year colleges due to open admissions policies, binding class size constraints, and a heavy reliance on state funding. Across a range of bandwidths, we find that students stuck on a waitlist and shut out of a course section were 22 to 28 percent more likely to take zero courses that term relative to a baseline of about 10 percent. Shutouts also increased transfer rates to nearby, but potentially less-desirable two-year colleges. These results offer some evidence that course availability can disrupt community college students' educational trajectories.

     
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    Source: Union catalogues
    Language: English
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    hdl: 10419/227349
    Series: Discussion paper series / IZA ; no. 13822
    Subjects: community college; waitlist; course shutout; course scarcity; transfers
    Scope: 1 Online-Ressource (circa 62 Seiten), Illustrationen
  3. Designing a permanent EU-wide stabilization facility
    Author: Beetsma, Roel; Kopits, György
    Published: December 2020
    Publisher:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    While the EU recovery plan provides a useful step in alleviating the economic effects of the coronavirus crisis and achieving further European integration, a permanent fiscal stabilization capacity dealing with major crises is still missing. Such a... more

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    While the EU recovery plan provides a useful step in alleviating the economic effects of the coronavirus crisis and achieving further European integration, a permanent fiscal stabilization capacity dealing with major crises is still missing. Such a EU-wide stabilization function would be in accordance with the subsidiarity principle, enshrined in the Treaty of Maastricht, as the risk-sharing that it provides can only be conducted at the supranational level. We envisage a mechanism to semi-automatically respond to region- and country-specific shocks via a central fiscal stabilization fund (CFSF). A simple model incorporating hysteresis, cross-border externalities and moral hazard, is deployed to illustrate the optimal responses of the CFSF to these shocks. A well-designed CFSF has the potential to improving welfare not only in crisis-hit member countries, but also in the union as a whole.

     
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    Source: Union catalogues
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    hdl: 10419/229553
    Series: CESifo working paper ; no. 8735 (2020)
    Subjects: subsidiarity principle; shocks; fiscal stabilization; transfers; European Union; corona
    Scope: 1 Online-Ressource (circa 34 Seiten)
  4. Statutory, effective and optimal net tax schedules in Lithuania
    Author: Černiauskas, Nerijus; Jousten, Alain
    Published: February 2020
    Publisher:  Lietuvos Bankas, Vilnius

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    Series: Working papers series / Lietuvos Bankas ; No.2020,72
    Subjects: Optimal tax schedule; effective tax schedule; statutory tax schedule; taxes; transfers; employees; self-employed; Lithuania
    Scope: 1 Online-Ressource (circa 36 Seiten), Illustrationen
  5. Household resource flows and food poverty during South Africa's lockdown
    short-term policy implications for three channels of social protection
    Author: Wills, Gabrielle; Berg, Servaas van der; Patel, Leila; Mpeta, Bokang
    Published: December 2020
    Publisher:  Department of Economics, University of Stellenbosch, Stellenbosch

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    Source: Union catalogues
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    Series: Stellenbosch economic working papers ; WP 2020, 22
    Subjects: poverty; transfers; welfare policy; social protection; COVID-19
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  6. Recent changes in the nature of distribution dynamics of US county incomes
    Author: Park, Seonyoung; Shin, Donggyun
    Published: [2020]
    Publisher:  School of Economics and Finance, Victoria University of Wellington, Wellington

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    Source: Union catalogues
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    Series: SEF working paper ; 2020, 5
    Subjects: bipolarization; distributional dynamics; index; growth dynamics; transfers
    Scope: 1 Online-Ressource (circa 53 Seiten), Illustrationen
  7. Enhancing the efficiency and equity of the tax system in Israel
    Author: Röhn, Oliver
    Published: 2020
    Publisher:  OECD, Paris, France

    Israel’s tax mix is reasonably growth- and employment-friendly. Nonetheless, tax reform is needed to foster an inclusive recovery from the COVID-19 crisis and help tackle Israel’s main economic and societal challenges of high poverty, including among... more

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    Israel’s tax mix is reasonably growth- and employment-friendly. Nonetheless, tax reform is needed to foster an inclusive recovery from the COVID-19 crisis and help tackle Israel’s main economic and societal challenges of high poverty, including among those in work, and slow aggregate productivity growth. The earned income tax credit has been an effective tool to reduce poverty and increase employment among the low-skilled and could be further expanded. The business tax system provides large benefits that aim to incentivise companies to become more productive, but the existing design may create distortions. This preferential tax treatment should be reviewed with a view to better targeting the scheme to ensure net benefits to society. There is also scope to simplify the tax system by removing inefficient tax expenditures and better leverage Israel’s impressive technological capacity to further lower compliance costs and reduce tax evasion. Finally, excise taxes should be adjusted, including by taxing carbon more heavily, to improve environmental and health outcomes.

     
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    Source: Staatsbibliothek zu Berlin
    Language: English
    Media type: Book
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    Series: OECD Economics Department working papers ; no. 1646
    Subjects: taxes; personal income taxes; business taxes; tax administration; environmental taxation; tax avoidance; transfers; tax evasion; subsidies; Israel; Economics
    Scope: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  8. What is the impact of weather shocks on prices?
    evidence from Ethiopia
    Author: Hill, Ruth Vargas; Fuje, Habtamu
    Published: September 2020
    Publisher:  World Bank Group, Poverty and Equity Global Practice, [Washington, DC, USA]

    The impact of drought on household welfare is the cumulative effect of crop losses and price changes in a local economy that are triggered by these initial losses. This paper combines data on monthly grain prices and wages in 82 retail markets over... more

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    The impact of drought on household welfare is the cumulative effect of crop losses and price changes in a local economy that are triggered by these initial losses. This paper combines data on monthly grain prices and wages in 82 retail markets over 17 years with data on district-level weather shocks to quantify the impact of drought on local prices and how this impact varies by month after harvest. The results show that price increases occur immediately after the completion of harvest and then dissipate so that inflationary effects are quite low during the lean season, contrary to commonly held views. The impact of shocks on prices is quite low now in Ethiopia - 4 percent at its peak post-2005 compared with 12 percent before 2005. In areas of the country where infrastructure investments have been high, there is now almost no inflationary impact of drought on prices. It is not clear whether it is infrastructure investments or something else that has driven that, but it shows that it is possible for rainfall shocks to have no inflationary impacts in low income economies. Inflationary impacts were also reduced more in districts where the Productive Safety Net Program was introduced. Comparing inflationary effects in districts with food versus cash transfers suggests that cash transfers do not have inflationary effects on grain prices during times of drought

     
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    Source: Union catalogues
    Language: English
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    Series: Policy research working paper ; 9389
    World Bank E-Library Archive
    Subjects: Weather shocks; grain markets; seasonality; transfers; roads
    Scope: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  9. Transfer payment systems and financial distress: insights from health insurance premium subsidies
    Author: Schmid, Christian; Schreiner, Nicolas; Stutzer, Alois
    Published: October 2020
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    How should payment systems of means-tested benefits be designed to improve the financial situation of needy recipients most effectively? We study this question in the context of mandatory health insurance in Switzerland, where recipients initially... more

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    How should payment systems of means-tested benefits be designed to improve the financial situation of needy recipients most effectively? We study this question in the context of mandatory health insurance in Switzerland, where recipients initially received either a cash transfer or subsidized insurance premiums (a form of in-kind transfer). A federal reform in 2014 forced cantons (i.e. states) to universally switch to in-kind provision. We exploit this setting based on a difference-in-differences design, analyzing rich individual-level accounting data and applying a machine learning approach to identify cash recipients prior to the reform. We find that switching from cash to in-kind transfers reduces the likelihood of late premiums payments by about 20% and of government debt collection for long-term missed payments by approximately 16%. There is no evidence for a negative spillover effect on the timely payment of the non-subsidized coinsurance bills for health services after the regime change.

     
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    Series: Discussion paper series / IZA ; no. 13767
    Subjects: health insurance; transfers; cash subsidies; in-kind transfers; financial distress; debt collection
    Scope: 1 Online-Ressource (circa 50 Seiten), Illustrationen
  10. El presupuesto general de la nación: una aproximación a las partidas de transferencias e inversión
    Author: Melo Becerra, Ligia Alba; Ramos-Forero, Jorge Enrique; Gómez, Camilo
    Published: [2020]
    Publisher:  Banco de la Republica Colombia, Bogotá, Colombia

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    Source: Union catalogues
    Language: Spanish
    Media type: Book
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    Series: Borradores de economía ; núm. 1136 (2020)
    Subjects: public expenditure; government budget; investment; transfers
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  11. Fiscal redistribution and social welfare
    doing more or more to do?
    Author: Coady, David P.; D'Angelo, Devin; Evans, Brooks
    Published: May 2020
    Publisher:  Institute for Social and Economic Research, University of Essex, Colchester, Essex, UK

    This paper embeds analysis of fiscal redistribution (FR) within the standard social welfare framework. Differences in FR are decomposed into differences in the magnitude (fiscal effort) and progressivity (fiscal progressivity) of transfers.... more

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    This paper embeds analysis of fiscal redistribution (FR) within the standard social welfare framework. Differences in FR are decomposed into differences in the magnitude (fiscal effort) and progressivity (fiscal progressivity) of transfers. Progressivity is further decomposed into differences in the distribution of transfers across income groups (targeting performance) and in the social welfare returns to targeting (targeting returns). This motivates a distinction between conditional and unconditional FR, where the latter abstracts from targeting returns. For illustrative purposes, the framework is applied to EUROMOD data for EU countries to explain differences in FR and to discuss patterns in FR highlighted in the literature.

     
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    Series: EUROMOD working paper series ; EM 20, 10
    Subjects: Fiscal redistribution; progressivity; targeting; transfers; taxes
    Scope: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  12. What are the poverty and inequality impacts of fiscal policy in Turkey?
    Author: Cuevas, P. Facundo; Lucchetti, Leonardo; Nebiler, Metin
    Published: June 2020
    Publisher:  World Bank Group, Poverty and Equity Global Practice, [Washington, DC, USA]

    Fiscal policy is central to not only macroeconomic stability and growth, but also to poverty and inequality reduction. This paper provides the most comprehensive assessment of the distributional incidence of Turkey's fiscal policy to date. It... more

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    Fiscal policy is central to not only macroeconomic stability and growth, but also to poverty and inequality reduction. This paper provides the most comprehensive assessment of the distributional incidence of Turkey's fiscal policy to date. It analyzes the combined and individual incidence of direct and indirect taxes, transfers, and social spending and benchmarks Turkey's achievements against peer countries. The results show that fiscal policy significantly reduces income inequality in Turkey, driven by social spending on education and health, and complemented by direct taxes and transfer schemes that countervail the inequality-increasing impact of indirect taxes. At the bottom of the income distribution, targeted transfers are insufficient to compensate for the effect of taxes, resulting in net increases in poverty. In the context of upper-middle-income countries, Turkey's performance is below the median. This is driven by the relatively larger negative impacts of indirect taxes and the more limited positive impacts of direct transfers and taxes. From a policy perspective, the paper contributes to identifying entry points for improving the equity impact of the fiscal package. Among these, targeting the minimum subsistence allowance (AGI) program toward the poor could be an efficient way forward. More broadly, the study represents a platform to simulate the distributional implications of a variety of fiscal changes to inform stakeholders and the policy debate

     
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    Source: Union catalogues
    Language: English
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    Series: Policy research working paper ; 9300
    World Bank E-Library Archive
    Subjects: fiscal policy; incidence; social spending; transfers; taxes; poverty; inequality; Turkey
    Scope: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  13. Designing fiscal redistribution
    the role of universal and targeted transfers
    Author: Coady, David; Le, Nghia-Piotr
    Published: 2020
    Publisher:  International Monetary Fund, [Washington, DC]

    There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, id est, a larger poverty impact for a given transfer... more

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    There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, id est, a larger poverty impact for a given transfer budget or lower fiscal cost for a given poverty impact, in practice targeting also comes with various costs, including incentive, administrative, social and political costs. The appropriate balance between targeted and universal transfers will therefore depend on how countries decide to trade-off these costs and benefits as well as on the potential for redistribution through taxes. This paper discusses the trade-offs that arise in different country contexts and the potential for strengthening fiscal redistribution in advanced and developing countries, including through expanding transfer coverage and progressive tax financing

     
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  14. Enhancing the efficiency and equity of the tax system in Israel
    Author: Röhn, Oliver
    Published: 2020
    Publisher:  OECD, Paris, France

    Israel’s tax mix is reasonably growth- and employment-friendly. Nonetheless, tax reform is needed to foster an inclusive recovery from the COVID-19 crisis and help tackle Israel’s main economic and societal challenges of high poverty, including among... more

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    Israel’s tax mix is reasonably growth- and employment-friendly. Nonetheless, tax reform is needed to foster an inclusive recovery from the COVID-19 crisis and help tackle Israel’s main economic and societal challenges of high poverty, including among those in work, and slow aggregate productivity growth. The earned income tax credit has been an effective tool to reduce poverty and increase employment among the low-skilled and could be further expanded. The business tax system provides large benefits that aim to incentivise companies to become more productive, but the existing design may create distortions. This preferential tax treatment should be reviewed with a view to better targeting the scheme to ensure net benefits to society. There is also scope to simplify the tax system by removing inefficient tax expenditures and better leverage Israel’s impressive technological capacity to further lower compliance costs and reduce tax evasion. Finally, excise taxes should be adjusted, including by taxing carbon more heavily, to improve environmental and health outcomes.

     
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    Source: Staatsbibliothek zu Berlin
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    Series: OECD Economics Department working papers ; no. 1646
    Subjects: taxes; personal income taxes; business taxes; tax administration; environmental taxation; tax avoidance; transfers; tax evasion; subsidies; Israel; Economics
    Scope: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  15. What is the impact of weather shocks on prices?
    evidence from Ethiopia
    Author: Hill, Ruth Vargas; Fuje, Habtamu
    Published: September 2020
    Publisher:  World Bank Group, Poverty and Equity Global Practice, [Washington, DC, USA]

    The impact of drought on household welfare is the cumulative effect of crop losses and price changes in a local economy that are triggered by these initial losses. This paper combines data on monthly grain prices and wages in 82 retail markets over... more

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    The impact of drought on household welfare is the cumulative effect of crop losses and price changes in a local economy that are triggered by these initial losses. This paper combines data on monthly grain prices and wages in 82 retail markets over 17 years with data on district-level weather shocks to quantify the impact of drought on local prices and how this impact varies by month after harvest. The results show that price increases occur immediately after the completion of harvest and then dissipate so that inflationary effects are quite low during the lean season, contrary to commonly held views. The impact of shocks on prices is quite low now in Ethiopia - 4 percent at its peak post-2005 compared with 12 percent before 2005. In areas of the country where infrastructure investments have been high, there is now almost no inflationary impact of drought on prices. It is not clear whether it is infrastructure investments or something else that has driven that, but it shows that it is possible for rainfall shocks to have no inflationary impacts in low income economies. Inflationary impacts were also reduced more in districts where the Productive Safety Net Program was introduced. Comparing inflationary effects in districts with food versus cash transfers suggests that cash transfers do not have inflationary effects on grain prices during times of drought

     
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    Series: Policy research working paper ; 9389
    World Bank E-Library Archive
    Subjects: Weather shocks; grain markets; seasonality; transfers; roads
    Scope: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  16. Designing fiscal redistribution
    the role of universal and targeted transfers
    Author: Coady, David; Le, Nghia-Piotr
    Published: 2020
    Publisher:  International Monetary Fund, [Washington, DC]

    There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, id est, a larger poverty impact for a given transfer... more

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    There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, id est, a larger poverty impact for a given transfer budget or lower fiscal cost for a given poverty impact, in practice targeting also comes with various costs, including incentive, administrative, social and political costs. The appropriate balance between targeted and universal transfers will therefore depend on how countries decide to trade-off these costs and benefits as well as on the potential for redistribution through taxes. This paper discusses the trade-offs that arise in different country contexts and the potential for strengthening fiscal redistribution in advanced and developing countries, including through expanding transfer coverage and progressive tax financing

     
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