The Distributional Impact of Fiscal Policy in Honduras

Author/Editor:

David Locke Newhouse ; Irene Yackovlev ; Robert Gillingham

Publication Date:

July 1, 2008

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper uses household survey data to estimate the incidence of tax and spending programs in Honduras. Any such exercise is fraught with difficulty, so our simplifying assumptions are carefully explained. Rather than look at tax and spending completely independently, we evaluate net incidence of major programs-such as health care and pensions-to get a more holistic evaluation of redistribution. Our results show that fiscal policy is, on balance, progressive, but that there is room for significant improvement. In particular, energy subsidies, university education and public pension programs provide disproportionate benefits to higher-income households.

Series:

Working Paper No. 2008/168

Subject:

Consumption Corporate income tax Fiscal policy Income Personal income

English

Publication Date:

July 1, 2008

ISBN/ISSN:

9781451870268/1018-5941

Stock No:

WPIEA2008168

Pages:

20

Please address any questions about this title to publications@imf.org