Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295818 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16795
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper examines the distributional effects of fiscal policy in Grenada. Using data from the 2017–2018 Living Conditions and Household Budgets Survey and following the Commitment to Equity (CEQ) analysis framework, we estimate the effects of fiscal policy interventions on inequality and poverty. Specifically, we analyze the distributional incidence of direct and indirect taxes, direct transfers provided by the social transfers and the school feeding programs, and in-kind transfers generated by public services in health and education. The results show that Grenada has a tax system that is neutral on the VAT side and progressive on the personal income tax side. Furthermore, direct transfers make a modest contribution to poverty reduction and are almost neutral in their distributive impact. The results contribute to the understanding of who bears the burden of taxation and benefits from transfers and of how Grenada's fiscal system can improve its redistributive effect.
Subjects: 
fiscal incidence
poverty
inequality
taxes
social transfers
public expenditure
public revenue
JEL: 
D31
H11
H22
H5
I14
I24
I3
O54
Document Type: 
Working Paper

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