Socially Improving Tax Reforms
CIRPEE Working Paper No. 04-01
48 Pages Posted: 16 Feb 2004
Date Written: January 2004
Abstract
This paper proposes graphical methods to determine whether commodity tax changes are socially improving, in the sense of improving social welfare or decreasing poverty for large classes of social welfare and poverty indices. It also derives estimators of critical poverty lines and economic efficiency ratios which can be used to characterize socially improving tax reforms. The statistical properties of the various estimators are derived in order to make the method implementable using survey data. The methodology is illustrated using a recently proposed reform of the Mexican Valued Added Tax system.
Keywords: Social Welfare, Poverty, Efficiency, Tax Reform, Stochastic Dominance
JEL Classification: D12, D63, H21, I32
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Poverty-Reducing Tax Reforms with Heterogeneous Agents
By Jean-yves Duclos, Paul Makdissi, ...
-
Stochastic Dominance, Poverty and the Treatment Effect Curve
By Paolo Verme
-
Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States
By Ajitava Raychaudhuri, Sudip Kumar Sinha, ...