Commitment to Equity Handbook

Nora Lustig is Samuel Z. Stone Professor of Latin American Economics and founding Director of the Commitment to Equity Instituteat Tulane University where she researches the impact of taxation and social spending on inequality and poverty, and the determinants of inequality. Her more recent work has focused on the short- and long-term impacts of COVID-19 on educational mobility, inequality, and poverty.

• VOLUME 1List of Illustrations Foreword François BourguignonAcknowledgmentsCEQ Handbook Nora LustigAbstracts Introduction1 About Volume 1: Fiscal Incidence Analysis: Methodology, Implementation, and Applications2 The Relevance of Fiscal Incidence Analysis in Today’s World3 Fiscal Incidence in Practice: The Commitment to Equity (CEQ) Assessment4 Main Messages 5 Organization of Volume 1 6 Implementing a CEQ Assessment: How to Use Volume 17 CEQ Assessment: Data Requirements 8 About Volume 2: Methodological Frontiers in Fiscal Incidence Analysis9 About the CEQ Institute10 About the CEQ Data Center on Fiscal RedistributionVOLUME 2List of IllustrationsAbstracts Alternative Methods to Value Transfers in Kind:Health, Education, and InfrastructureChapter 1: The Effect of Government Health Expenditure on IncomeDistribution: A Comparison of Valuation Methods in Ghanaby Jeremy Barofsky and Stephen D. YoungerIntroduction1 What’s Wrong with the Cost of Provision? 2 Using Healthcare Consumers’ Choices to Estimate the Compensating Variation for Public Healthcare Expenditures 3 The Health Outcomes Approach 4 Summary: Choosing among the Options5 Insurance Value of Financial Risk Reduction 6 ConclusionAppendix 1A 1 Using the Spectrum Policy Models Software 2 Financial Risk Protection with Consumption Floor Proportional to Income 3 Concentration Curves by Valuation Method4 Using Willingness and Ability to Pay by Matching Publicly Funded Health Services to Private Health Services5 Data and Do-Files for ReplicationChapter 2: The Market Value of Public Education: A Comparison ofThree Valuation Methodsby Sergei SoaresIntroduction 1 First Method: Schooling Is Worth What It Costs the State to Provide It 2 Second Method: Schooling Is Worth What the Labor Market Says It Is Worth 3 Third Method: Schooling Is Worth What the Private Education Market Says It Is Worth4 Comparison of Results5 Conclusion Chapter 3: Redistribution through Education: Assessing the Long-TermImpact of Public Spending by Sergio UrzuaIntroduction 1 The Conceptual Framework 2 The Value of Public Education Spending to Its Beneficiaries 3 Chile and Ghana: Differences and Similarities 774 Empirical Analysis5 Conclusions 105Appendix 3A Dynamic Fiscal Incidence of Public Spendingin Education 1111 The Recursive Problem2 Intertemporal Fiscal Incidence AnalysisAppendix 3B Instrumental VariableChapter 4: The Market Value of Owner-Occupied Housing and Public Infrastructure Servicesby Sergei SoaresIntroduction 1 Literature2 Methodology 3 Imputing Rents and Public Infrastructure Services for 2015 4 Comparisons with 2005 and 19955 Conclusions Fiscal Incidence of Corporate TaxesChapter 5: Taxes, Transfers, and Income Distribution in Chile: Incorporating Undistributed Profits by Bernardo Candia and Eduardo EngelIntroduction 1 Tax Regime and Social Spending in Chile 2 Data, Methodology, and Assumptions 3 Results 4 Marginal Contribution and Shapley Value 5 Distributive Effects of the 2014 Tax Reform6 Conclusions Redistributive Impact of Contributory PensionsChapter 6: The Within-System Redistribution of Contributory Pension Systems: A Conceptual Framework and Empirical Method of Estimationby Carlos GrushkaIntroduction 1 Are Pension Systems Tax-Transfers or Deferred Wages Schemes? 2 Redistribution, Neutrality, and Actuarial Fairness 3 Social Security Pensions in Argentina 4 How Redistribution Works for Social Security Pensions in Argentina5 An Alternative Methodological Framework 6 Conclusion Fiscal Redistribution and SustainabilityChapter 7: Intertemporal Sustainability of Fiscal Redistribution: A Methodological Framework by Jose Maria FanelliIntroduction 1 Income Concepts, Fiscal Redistributions, and Sustainability 2 Fiscal Redistributions, Demography, and Wealth Constraints 3 Fiscal Redistributions and Income Strata4 Concluding Remarks Appendix 7A Pensions as Deferred Income 1 Income Strata and Deferred Income 2 Private Wealth and Forced Savings 3 Demography and Wealth Appendix 7B NomenclatureChapter 8: Fiscal Redistribution, Sustainability, and Demography in Latin Americaby Ramiro Albrieu and Jose Maria FanelliIntroduction 1 Fiscal Policy and Redistribution Outcomes 2 Fiscal Redistributions and Debt Sustainability 3 The Future Sustainability of Fiscal Policy in Aging Societies4 Conclusion Political Economy of RedistributionChapter 9: On the Political Economy of Redistribution and Provision of Public Goodsby Stefano Barbieri and Koray CaglayanIntroduction 1 The Meltzer and Richard (1981) Pure Redistribution Model 2 Assumptions of Linear Tax Rates and the Importance of Public Provision 3 The Provision of Public Goods Using a Median Voter Framework 4 Extension to Nonlinear Tax Schemes 5 The Provision of Public Goods Financed with a Flat Tax with Exemptions6 Taxation and Redistribution Models without Functional Form Assumptions 7 ConclusionAppendix 9A Technical Derivations of the Meltzer and Richard (1981) Model 1 Response of Consumption to Government Transfers 2 Response of Pretax Income to Productivity Appendix 9B Technical Derivations of Lambert (2001) About the Authors Index

The CEQ Handbook is unique in its conceptual clarity and methodological comprehensiveness. It is indispensable reading for anyone interested in how taxation and public expenditure affect poverty and inequality in developing countries.