The Distributional Impact of Fiscal Policy in Honduras

 
Author/Editor: Gillingham, Robert ; Newhouse, David Locke ; Yackovlev, Irene
 
Publication Date: July 01, 2008
 
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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. 08/168
Subject(s): Honduras | Fiscal policy | Tax policy | Subsidies | Health care | Pensions | Education

Author's Keyword(s): Tax policy | expenditure policy | subsidies | welfare distribution | household survey data
 
English
Publication Date: July 01, 2008
Format: Paper
Stock No: WPIEA2008168 Pages: 20
Price:
US$18.00 (Academic Rate:
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