This paper studies the redistribution effect of personal income tax in Pakistan. We decompose the overall tax system in order to evaluate the contribution of rate, allowances, deductions, exemptions and credits. The structure given in Income Tax Ordinance, 2001, is applied to gross household...

For centuries it has been believed that the extension of the franchise in unequal societies would lead to relatively high levels of redistribution. According to international rankings, how- ever, among the fourteen most unequal countries in the world, nine have been democratic for at least the...

Economic and political decisions usually involve a trade-off between efficiency and equality considerations. While some inequality is expected to prevail in our soci- eties, high levels of it are objectionable on various grounds. One of the fundamental roles of government is to collect and...

This paper reviews the recent work on the application of the CGE-microsimulation models. The discussion focuses on the various linking methodologies and how they can impact our results.

Pakistan has been experiencing robust economic growth for the past few years. The macroeconomic position as exhibited by the real sector growth, fiscal indicators and external balance has reasonably improved. However the big question remains; will Pakistan be able to sustain these growth levels?...

This paper studies the welfare impact of changes in the external balance of a developing economy (Pakistan). We explain that the economic growth achieved during the past decade is highly dependent on the improvements in external balance. After 2001, Pakistan has benefited from, an increase in...

The employment of financial development indicators without due consideration to country/regional specific financial development realities remains an issue of substantial policy relevance. Financial depth in the perspective of money supply is not equal to liquid liabilities in every development...