An Application of Distribution-Neutral Fiscal Policy /:

Distribution neutral fiscal policy refers to a structure of taxes and transfers that keep the income distribution unchanged even after positive or negative shocks to an economy. This is referred to as a Strong Pareto Superior (SPS) allocation which improves the standard Pareto criterion by keeping t...

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Bibliographic Details
Main Authors: Gupta, Sanjeev (Author), Sarkar, Sandip (Author), Marjit, Sugata (Author)
Corporate Author: International Monetary Fund
Format: Electronic eBook
Language:English
Published: [Washington, D.C.] : International Monetary Fund, [2018]
Series:IMF working paper ; WP/18/12.
Subjects:
Online Access:DE-862
DE-863
Summary:Distribution neutral fiscal policy refers to a structure of taxes and transfers that keep the income distribution unchanged even after positive or negative shocks to an economy. This is referred to as a Strong Pareto Superior (SPS) allocation which improves the standard Pareto criterion by keeping the degree of inequality, but not the absolute level of income intact. We apply this methodology to India to compute SPS tax rates and determine their proximity to actual tax rates. Limited available data on income and expenditure shows that the official policies so far are close to desired benchmark level. Our methodological contribution will be enriched further with more detailed income tax and transfer data.
Item Description:Available in PDF, ePUB, and Mobi formats on the Internet.
Physical Description:1 online resource (21 pages)
ISBN:1484338561
9781484338568
1484338987
9781484338988

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