A New Tool for Distributional Incidence Analysis An Application to Fuel Subsidy Reform

Increased focus on income inequality and distributional issues has made incidence analysis a crucial input into policy decisions. This note presents the theoretical framework used to conduct incidence analysis of fuel price subsidy reform and presents a user-friendly tool for its application. This n...

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Bibliographic Details
Main Author: Fabrizio, Stefania
Other Authors: Goumilevski, Alexei, Kpodar, Kangni
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2016
Series:Technical Notes and Manuals
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Increased focus on income inequality and distributional issues has made incidence analysis a crucial input into policy decisions. This note presents the theoretical framework used to conduct incidence analysis of fuel price subsidy reform and presents a user-friendly tool for its application. This new tool requires limited inputs and has the advantage of using the commonly available software program Excel. The note presents an illustration based on the case of Brazil, using the 2005 household survey and input-output table. The results reinforce the typical finding that fuel subsidies benefit well-off households and that their removal would be progressive
Physical Description:16 pages
ISBN:9781475546743