IDEAS home Printed from https://ideas.repec.org/p/akh/wcefip/016.html
   My bibliography  Save this paper

Fiscal Policy and Income Distribution. Argentina 1995 – 2010

Author

Listed:
  • Walter Cont
  • Alberto Porto

Abstract

This paper studies the effect of consolidate –national and provincial– fiscal policy in Argentina on income distribution, building a novel panel data for 1995-2010 considering the 24 jurisdictions and quintile groups within provinces. We allocate expenditures, taxes and transfers among provinces and among people within provinces, according to benefit and incidence principles, avoiding double accounting, and build three measures of income: ex ante, interim, and ex post (or extended) income. We find that i) personal income inequality increased between 1995 and 2002, and then reverted the trend; ii) the trends in income inequality have a parallel with the different macroeconomic regimes nested in the sample (convertibility between 1995 and 2001 and post convertibility since 2002); iii) the effect of fiscal policy is a reduction in the Gini coefficient of 6 points in 1995, 5 points in 2002 and 10 points in 2010; iv) the mix of instruments to redistribute income changed with time towards cash transfers and against in-kind expenditures; iv) provincial budgets contribute strongly to progressivity; v) social expenditure is the most important redistribution tool, but economic services have grown in size between sub-periods, pushed by government subsidies in energy and transport, and vi) the paper measures the distribution of budget but leave aside the distribution of results (e.g., expenditure performance).

Suggested Citation

  • Walter Cont & Alberto Porto, 2015. "Fiscal Policy and Income Distribution. Argentina 1995 – 2010," CEFIP, Working Papers 016, CEFIP, Universidad Nacional de La Plata.
    • Handle: RePEc:akh:wcefip:016
    as

    Download full text from publisher

    File URL: https://cefip.econo.unlp.edu.ar/wp-content/uploads/2024/02/dt_2015_09_02_v01_f01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cont, Walter & Porto, Alberto, 2014. "Personal and regional redistribution through public finance in a federal setting," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 563-578.
    2. Javier Alejo & Marcelo Bérgolo & Fedora Carbajal, 2013. "Las Transferencias Públicas y su impacto distributivo: La Experiencia de los Países del Cono Sur en la década de 2000," CEDLAS, Working Papers 0141, CEDLAS, Universidad Nacional de La Plata.
    3. Tresch, Richard W., 2014. "Public Finance," Elsevier Monographs, Elsevier, edition 3, number 9780124158344.
    4. Sewell, David O, 1996. ""The Dangers of Decentralization" According to Prud'homme: Some Further Aspects," The World Bank Research Observer, World Bank, vol. 11(1), pages 143-150, February.
    5. Aronson, J. Richard & Lambert, Peter J., 1994. "Decomposing the Gini Coefficient to Reveal the Vertical, Horizontal, and Reranking Effects of Income Taxation," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(2), pages 273-294, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Walter Cont & Alberto Porto, 2016. "Fiscal Policy and Income Distribution: Measurement for Argentina 1995 ¨C 2010," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 75-92, May.
    2. Steiner, Susan, 2005. "Decentralisation and Poverty Reduction: A Conceptual Framework for the Economic Impact," GIGA Working Papers 3, GIGA German Institute of Global and Area Studies.
    3. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    4. Michael L. Katz & Harvey S. Rosen, 1985. "Tax Analysis in an Oligopoly Model," Public Finance Review, , vol. 13(1), pages 3-20, January.
    5. Cont, Walter & Porto, Alberto, 2014. "Personal and regional redistribution through public finance in a federal setting," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 563-578.
    6. Nolan, Matt, 2018. "Horizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013," Working Paper Series 7657, Victoria University of Wellington, Chair in Public Finance.
    7. James A. Brander & Barbara J. Spencer, 1986. "International Oligopoly and Asymmetric Labour Market Institutions," NBER Working Papers 2038, National Bureau of Economic Research, Inc.
    8. J. Richard Aronson & Peter J. Lambert & Donald R. Trippeer, 1999. "Estimates of the Changing Equity Characteristics of the U.S. Income Tax with International Conjectures," Public Finance Review, , vol. 27(2), pages 138-159, March.
    9. Umaima Arif & Eatzaz Ahmad, 2018. "A Framework For Analyzing The Impact Of Fiscal Decentralization On Macroeconomic Performance, Governance And Economic Growth," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(01), pages 3-39, May.
    10. Diego F. Angel‐Urdinola & Quentin Wodon, 2004. "The Impact on Inequality of Raising the Minimum Wage: Gap‐narrowing and Reranking Effects," LABOUR, CEIS, vol. 18(2), pages 317-327, June.
    11. Ivica Urban & Peter J. Lambert, 2008. "Redistribution, Horizontal Inequity, and Reranking," Public Finance Review, , vol. 36(5), pages 563-587, September.
    12. Wagstaff, Adam & van Doorslaer, Eddy & van der Burg, Hattem & Calonge, Samuel & Christiansen, Terkel & Citoni, Guido & Gerdtham, Ulf-G & Gerfin, Mike & Gross, Lorna & Hakinnen, Unto, 1999. "Equity in the finance of health care: some further international comparisons1," Journal of Health Economics, Elsevier, vol. 18(3), pages 263-290, June.
    13. Shah, Anwar, 1998. "Balance, accountability, and responsiveness : lessons about decentralization," Policy Research Working Paper Series 2021, The World Bank.
    14. Rosella Levaggi & Francesco Menoncin, 2014. "Health care expenditure decisions in the presence of devolution and equalisation grants," International Journal of Health Economics and Management, Springer, vol. 14(4), pages 355-368, December.
    15. Sören Blomquist & Luca Micheletto, 2009. "Nonlinear Income Taxation And Matching Grants In A Federation With Decentralized In-Kind Transfers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 543-575, May.
    16. Herault, Nicolas & Jenkins, Stephen P., 2023. "Redistribution, horizontal inequity, and reranking: direct taxation in the UK, 1977–2020," LSE Research Online Documents on Economics 120996, London School of Economics and Political Science, LSE Library.
    17. Timothy J. Goodspeed & Daphne A. Kenyon, 1993. "The Nonprofit Sector's Capital Constraint: Does It Provide a Rationale for the Tax Exemption Granted To Nonprofit Firms?," Public Finance Review, , vol. 21(4), pages 415-433, October.
    18. Martin Adler & Stefanie Peer & Tanja Sinozic, 2019. "Autonomous, Connected, Electric Shared vehicles (ACES) and public finance: an explorative analysis," Tinbergen Institute Discussion Papers 19-005/VIII, Tinbergen Institute.
    19. Joseph Teyu Chou & Chien-Hao Fu, 2022. "Which Families Benefited from the Recent Personal Income Tax Reform in Taiwan: Evidence from the Administrative Data," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 433-451, September.
    20. Swadhin Mondal, 2015. "Health Policy Changes and Their Impact on Equity in Health Financing in India," Working Papers id:6661, eSocialSciences.

    More about this item

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:akh:wcefip:016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Laura Carella (email available below). General contact details of provider: https://edirc.repec.org/data/funlpar.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.