Objective

No government is a passive spectator of its country’s economy. Instead, governments seek to protect the welfare of their citizens through pensions and other social programmes. Fiscal and social reforms are subject to political swings, thus, tax and benefit systems are complex. Given this scenario, Latin American countries would largely benefit from using tax-benefit microsimulation models to perform quantitative analysis of policies, including ex-ante assessment of fiscal reforms.

Consequently, the main objective of this project is to contribute to the evaluation of equitable, more efficient and transparent reforms of fiscal and social protection systems in LAC through a tool for decision making on equitable, pro-growth fiscal reform alternatives in LAC, based on theoretical and empirical research as well as on existing best practices, for wide dissemination.

The countries involved in this project are: Mexico, Guatemala, Chile, Uruguay and Brazil. Accordingly, the final products will be tax-benefit models and a Country Report for each country