Subsidy Reforms and Poverty Alleviation
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Summary:
This paper presents a general framework for characterizing the optimal pattern of subsidies for poverty alleviation under budgetary constraints and suggests possible reforms for the existing pattern of subsidies. The government may subsidize or tax goods in order to meet its objectives. The paper introduces the concept of a consumer equilibrium and shows that there are cases of equilibria in which reforms can generate not only fiscal savings but also Pareto improve the welfare of both poor and wealthy consumers.
Series:
Working Paper No. 2001/126
Subject:
Fiscal stance Optimal taxation Personal income Poverty reduction Public employment
English
Publication Date:
September 17, 2001
ISBN/ISSN:
9781451854909/1018-5941
Stock No:
WPIEA1262001
Pages:
24
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