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Fiscal policy and spatial inequality in Latin America and beyond

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  • Faguet, Jean-Paul
  • Shami, Mahvish

Abstract

We study the theoretical and empirical links between fiscal policy and spatial inequality, with a non-exclusive focus on Latin American countries. We outline the two main dimensions of fiscal policy vis-à-vis economic inequality, and show how these can be used to analyze specific policy measures. We examine why fiscal policies so often fail to have the ameliorative effects that theory predicts on spatial inequality, and explore ways to make policy tools more effective. We explore the relation between fiscal policies and spatial inequalities in three case studies: Mexico, Brazil and Argentina. Lastly, we examine the effects of decentralization on spatial inequality in Bolivia.

Suggested Citation

  • Faguet, Jean-Paul & Shami, Mahvish, 2008. "Fiscal policy and spatial inequality in Latin America and beyond," LSE Research Online Documents on Economics 27162, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:27162
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    3. José R. Molinas Vega & Ricardo Paes de Barros & Jaime Saavedra Chanduvi & Marcelo Giugale & Louise J. Cord & Carola Pessino & Amer Hasan, 2012. "Do Our Children Have a Chance? A Human Opportunity Report for Latin America and the Caribbean," World Bank Publications - Books, The World Bank Group, number 2374.

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    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance

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