{ "title": "IMF Fiscal Monitor: Tackling Inequality, October 2017", "publication": "Fiscal Monitor, October 2017", "sourceUrl": "https://www.imf.org/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017", "canonical": "https://www.imf.org/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017", "overlayPath": "/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/index.md", "summary": "At the global level, inequality has declined substantially over the past three decades, but within national boundaries, the picture is mixed: some countries have experienced a reduction in inequality while others, particularly advanced economies, have seen a significant increase that has, among other things, contributed to growing public backlash against globalization. Excessive levels of inequality can erode social cohesion, lead to political polarization, and ultimately lower economic growth, but whether inequality is excessive depends on country-specific factors, including the growth context in which inequality arises, along with societal preferences. This Fiscal Monitor focuses on how fiscal policy can help governments address high levels of inequality while minimizing potential trade-offs between efficiency and equity.", "publishDate": "2017-10-11", "sections": [ { "heading": "Key findings on inequality trends", "content": "- At the global level, inequality has declined substantially over the past three decades. \n- Within national boundaries the picture is mixed: some countries have experienced a reduction in inequality while others, particularly advanced economies, have seen a significant increase. \n- Rising inequality in some countries has contributed to growing public backlash against globalization. \n- Excessive levels of inequality can erode social cohesion, lead to political polarization, and ultimately lower economic growth. \n- Whether inequality is excessive depends on country-specific factors, including the growth context in which inequality arises, along with societal preferences." }, { "heading": "Fiscal policy role and focus areas", "content": "- The Fiscal Monitor examines how fiscal policy can help governments address high levels of inequality while minimizing potential trade-offs between efficiency and equity. \n- The report concentrates on three salient policy debates:\n - Progressivity of tax rates at the top of the income distribution.\n - The introduction of a universal basic income.\n - The role of public spending on education and health to equalize opportunities and outcomes." }, { "heading": "Analytical approach and tools", "content": "- The analysis relies on:\n - Existing theoretical and empirical literature.\n - IMF work on inequality and fiscal policy.\n - Country experiences.\n - New analytical work, including various static microsimulation analyses based on household survey data.\n- Simulations using a dynamic general equilibrium model, calibrated to country-specific data and behavioral parameters, illustrate the potential impact of alternative budget-neutral tax and transfer measures on income inequality and economic growth." }, { "heading": "Themes addressed in the report", "content": "- Documentation of recent trends in income inequality, including inequality both between and within countries. \n- Examination of the redistributive role of fiscal policies over recent decades and emphasis on the importance of policy design to minimize efficiency costs. \n- Focused analysis of key components of fiscal redistribution: progressivity of income taxation, universal basic income, and public spending policies for achieving more equitable education and health outcomes." }, { "heading": "Empirical and model-based outputs highlighted", "content": "- Static microsimulation analyses based on household survey data to assess distributional impacts. \n- Dynamic general equilibrium model simulations to assess macroeconomic and distributional consequences of budget-neutral reforms. \n- Annexes and figures provide detailed empirical measures and decompositions (for example, Global Income Inequality: Gini Coefficient, 1988–2015; Decomposition of Global Income Inequality, 1988–2013; and many country- and theme-specific figures and tables).\n\nIMF Fiscal Monitor: Tackling Inequality, October 2017\n\n---\n\n Content in this bundle\n\n- fiscalmonitordatabaseoct2017 — Dataset overview\n - fiscalmonitordatabaseoct2017 — Dataset overview (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - fiscalmonitordatabaseoct2017 — Dataset overview (XLSX){rel=\"external\" type=\"application/vnd.openxmlformats-officedocument.spreadsheetml.sheet\"}\n- 9781484317419.pdf\n - 9781484317419.pdf (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - 9781484317419.pdf (PDF){rel=\"external\" type=\"application/pdf\"}\n- Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017\n - Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017\n - IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017\n - Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017\n - Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017\n - Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Glossary -- Tackling Inequality; Fiscal Monitor; October 2017\n - Glossary -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Glossary -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Preface -- Tackling Inequality; Fiscal Monitor; October 2017\n - Preface -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Preface -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017\n - Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017\n - Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017\n - Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017\n - Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017\n - Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Inequality: Fiscal Policy Can Make the Difference\n- FM Data on IMF DATAMAPPER\n- Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website.\n- Modify your profile\n\nSource: https://www.imf.org/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017" } ], "bullets": [ "[Markdown version](/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/index.md)", "[Structured JSON version](/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/index.json)", "[Bundle manifest](/en/publications/fm/issues/2017/10/05/fiscal-monitor-october-2017/bundle-manifest.json)", "Published: October 11, 2017", "At the global level, inequality has declined substantially over the past three decades.", "Within national boundaries the picture is mixed: some countries have experienced a reduction in inequality while others, particularly advanced economies, have seen a significant increase.", "Rising inequality in some countries has contributed to growing public backlash against globalization.", "Excessive levels of inequality can erode social cohesion, lead to political polarization, and ultimately lower economic growth.", "Whether inequality is excessive depends on country-specific factors, including the growth context in which inequality arises, along with societal preferences.", "The Fiscal Monitor examines how fiscal policy can help governments address high levels of inequality while minimizing potential trade-offs between efficiency and equity.", "The report concentrates on three salient policy debates:", "The analysis relies on:", "Simulations using a dynamic general equilibrium model, calibrated to country-specific data and behavioral parameters, illustrate the potential impact of alternative budget-neutral tax and transfer measures on income inequality and economic growth.", "Documentation of recent trends in income inequality, including inequality both between and within countries.", "Examination of the redistributive role of fiscal policies over recent decades and emphasis on the importance of policy design to minimize efficiency costs.", "Focused analysis of key components of fiscal redistribution: progressivity of income taxation, universal basic income, and public spending policies for achieving more equitable education and health outcomes.", "Static microsimulation analyses based on household survey data to assess distributional impacts.", "Dynamic general equilibrium model simulations to assess macroeconomic and distributional consequences of budget-neutral reforms.", "Annexes and figures provide detailed empirical measures and decompositions (for example, Global Income Inequality: Gini Coefficient, 1988–2015; Decomposition of Global Income Inequality, 1988–2013; and many country- and theme-specific figures and tables).", "**fiscalmonitordatabaseoct2017 — Dataset overview**", "**9781484317419.pdf**", "**Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017**", "**IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Executive Summary -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Glossary -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Preface -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Fiscal Monitor Selected Topics -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Methodological and Statistical Appendix -- Tackling Inequality; Fiscal Monitor; October 2017**", "**Infographic: Improve Access to Health and Education, IMF Fiscal Monitor, October 2017**", "**Infographic: Scope to Increase Tax Progressivity, IMF Fiscal Monitor, October 2017**", "**Infographic: Universal Basic Income, IMF Fiscal Monitor, October 2017**", "[Inequality: Fiscal Policy Can Make the Difference](https://blogs.imf.org/2017/10/11/inequality-fiscal-policy-can-make-the-difference/)", "[FM Data on IMF DATAMAPPER](http://www.imf.org/external/datamapper/datasets/FM)", "[Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website.](https://www.imf.org/en/email-subscription/index)", "[Modify your profile](https://www.imf.org/en/email-subscription/login)" ], "related": [ { "title": "fiscalmonitordatabaseoct2017 — Dataset overview", "role": "dataset", "sourceUrl": "https://www.imf.org/-/media/files/publications/fiscal-monitor/2017/october/data/fiscalmonitordatabaseoct2017.xlsx", "summary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/data/fiscalmonitordatabaseoct2017.xlsx.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/data/fiscalmonitordatabaseoct2017.xlsx", "mime": "application/vnd.openxmlformats-officedocument.spreadsheetml.sheet" } }, { "title": "9781484317419.pdf", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/fiscal-monitor/2017/october/pdf/fm1702.pdf", "summary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fm1702.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fm1702.pdf", "mime": "application/pdf" } }, { "title": "Assumptions and Conventions -- Tackling Inequality; Fiscal Monitor; October 2017", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmassumconv.pdf", "summary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmassumconv.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmassumconv.pdf", "mime": "application/pdf" } }, { "title": "IMF Executive Board Discussion of the Outlook -- Tackling Inequality; Fiscal Monitor; October 2017", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmboardsum.pdf", "summary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmboardsum.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmboardsum.pdf", "mime": "application/pdf" } }, { "title": "Chapter 1. Tackling Inequality -- Tackling Inequality; Fiscal Monitor; October 2017", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmc1.pdf", "summary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmc1.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmc1.pdf", "mime": "application/pdf" } }, { "title": "Country Abbreviations -- Tackling Inequality; Fiscal Monitor; October 2017", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmcountryabbrev.pdf", "summary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmcountryabbrev.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fiscal-monitor/2017/october/pdf/fmcountryabbrev.pdf", "mime": "application/pdf" } }, { "title": "Executive Summary -- Tackling Inequality; Fiscal Monitor; 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