The author investigates the effects of a marginal tax reform on household welfare in Mexico. He estimates the extent to which Mexican households react to changes in prices, and uses the estimates to simulate changes in social welfare resulting from marginal tax reform. Results indicate that poorer households tend to have significantly larger income and price elasticities. Hence, to correctly evaluate the effects of economic policies on the poor, it...
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INFORMATION
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2004/04/01
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Document de travail de recherche sur les politiques
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WPS3266
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1
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1
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2010/07/01
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Efficiency and equity of a marginal tax reform - income, quality, and price elasticities for Mexico
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poor household
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