Redistributive effects of fiscal policies in Mexico: Corrections for top income measurement problems.

ABSTRACT: This article assesses the redistributive effects of fiscal instruments in Mexico in 2010-2014, correcting for top-income measurement problems. Two correction methods are applied-survey-sample reweighting for households' nonresponse probability and replacing of top incomes using smooth Pareto distributions-to reestimate the effects of pensions, transfers, taxes, and subsidies. These corrections yield higher inequality measures, consistent between the reweighting and replacing methods. Taxable income shows the highest inequality and undergoes the highest upward correction for top-income problems, whereas nontaxable income is strongly equalizing. Contributory pensions are inequality-neutral, while transfers, taxes, and subsidies are equalizing. In-kind transfers, cash-like transfers, and dire

SUBMITTER: Hlasny V 

PROVIDER: S-EPMC8362083 | biostudies-literature | 2021 May

REPOSITORIES: biostudies-literature