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This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income remains unchanged. We show that in a world with more than a single fiscal instrument, the simple rule that progressive...
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Using standard fiscal incidence analysis, this paper estimates the impact of fiscal policy on inequality and poverty in … countries tend to redistribute more. Bolivia, Colombia, El Salvador, Guatemala, Honduras and Peru redistribute below the trend … policy reduces poverty in nine countries. However, in Brazil, Bolivia, Guatemala and Honduras, the incidence of poverty after …
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