Social Spending, Distribution, and Equality of Opportunities : Opportunity Incidence Analysis

Existing evidence forms a body of "conventional wisdom" on the redistributive impact of fiscal policies that has been recently questioned by more disaggregated analyses. This paper proposes an additional extension to the traditional benefit incidence analysis to explore further the extent to which the conventional wisdom holds, as well as to provide effective guidance in fiscal decision making. The benefit incidence analysis extension includes linking fiscal policies with the concept of equality of opportunities. The paper describes this approach and showcases the application of the proposed "opportunity incidence analysis" to six pilot countries: Liberia, Cote d Ivoire, Zambia, Tajikistan, Thailand, and Paraguay. Three main contributions stand out: first, opportunity incidence analysis complements traditional benefit incidence analysis by applying its mechanics to a more forward looking concept of equal opportunity. Second, opportunities can be used to target public spending with higher precision. Third, micro-simulations can be used to understand the cost-effectiveness of alternative spending interventions that seek to improve equality of opportunities. All of these results complement the diagnosis produced by traditional incidence analysis and provide useful information to guide specific policy decisions.

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Bibliographic Details
Main Author: Cuesta, Jose
Language:English
en_US
Published: World Bank, Washington, DC 2013-06
Subjects:ACCESS TO HEALTH CARE SERVICES, AFFORDABLE ACCESS, BANK DEPOSITS, BASIC HEALTH CARE, BASIC SERVICES, BENEFICIARIES, BENEFIT INCIDENCE, BENEFIT INCIDENCE ANALYSIS, BUDGETARY ALLOCATION, BUDGETARY CONSTRAINTS, CASH TRANSFERS, CENTRAL ADMINISTRATION, CITIES, COMMUNITY SCHOOLS, COMPTROLLER GENERAL, COST-EFFECTIVENESS, DATA QUALITY, DECENTRALIZATION, DECISION MAKING, DEMAND FOR EDUCATION SERVICES, DEMAND FOR HEALTH CARE, DEPOSITS, DIAGNOSTIC TOOL, DIFFERENTIALS, DISTRIBUTION OF INCOME, DISTRIBUTION OF PUBLIC SPENDING, DISTRIBUTION OF WELFARE, DISTRIBUTIONAL EFFECTS, EARLY CHILDHOOD, EARNINGS, ECONOMIC GROWTH, EDUCATION LEVEL, EDUCATION LEVELS, EDUCATION POLICIES, EDUCATION SERVICES, EDUCATION SPENDING, EDUCATION SYSTEM, EDUCATIONAL BENEFITS, EDUCATIONAL OPPORTUNITIES, ELIGIBLE CHILDREN, ENROLLMENT, EQUAL ACCESS, EQUAL OPPORTUNITIES, EQUAL OPPORTUNITY, EQUALITY, EQUALITY OF OPPORTUNITIES, EQUALITY OF OPPORTUNITY, EQUILIBRIUM, ETHNIC GROUP, EVALUATION TECHNIQUES, EXCLUSION, EXPENDITURE, EXPENDITURE CATEGORY, EXPENDITURE POLICIES, EXPENDITURE PROGRAMS, EXPENDITURES, FAMILIES, FAMILY INCOME, FARMERS, FINANCIAL CRISIS, FINANCIAL REPRESSION, FISCAL COST, FISCAL DATA, FISCAL DECISIONS, FISCAL IMPLICATIONS, FISCAL POLICIES, FISCAL POLICY, FISCAL RESOURCES, FOREIGN EXCHANGE, GENDER, GROSS DOMESTIC PRODUCT, HEALTH CARE, HEALTH CARE FACILITIES, HEALTH CARE SPENDING, HEALTH CENTERS, HEALTH MINISTRY, HEALTH OUTCOME, HEALTH PROVIDERS, HEALTH SERVICES, HOSPITAL CARE, HOSPITAL SERVICES, HOSPITALS, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLDS, HUMAN CAPITAL, ILLNESS, INCIDENCE ANALYSES, INCOME DISTRIBUTION, INCOME GROUP, INCOME GROUPS, INEQUALITIES, INEQUALITY, INTEREST RATE, INTEREST RATE CONTROLS, INTERNATIONAL BANK, INTERVENTION, LACK OF ACCESS, LIVING CONDITIONS, LOCAL TAXES, MEDICAL SERVICES, MINIMUM WAGES, MINISTRY OF EDUCATION, MINISTRY OF FINANCE, MINISTRY OF HEALTH, NATIONAL PLANNING, NET BENEFIT, NET BENEFITS, NET SPENDING, NUTRITION, PEOPLES, PHARMACIES, POLICY ALTERNATIVES, POLICY DECISION, POLICY DECISIONS, POLICY INTERVENTIONS, POLICY MAKERS, POLICY PURPOSES, POVERTY REDUCTION, PRIMARY HEALTH CARE, PRIVATE PROVIDERS, PRIVATE SECTOR, PRIVATE SPENDING, PROBABILITY, PROVINCE, PROVINCES, PROVINCIAL LEVEL, PROVISION OF HEALTH CARE, PUBLIC EDUCATION, PUBLIC EDUCATION SPENDING, PUBLIC EDUCATION SYSTEM, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE ON HEALTH, PUBLIC EXPENDITURES, PUBLIC EXPENDITURES ON HEALTH, PUBLIC FINANCE, PUBLIC HEALTH, PUBLIC HEALTH CARE, PUBLIC HEALTH CARE SERVICES, PUBLIC HEALTH SERVICES, PUBLIC HEALTH SYSTEM, PUBLIC INTERVENTIONS, PUBLIC POLICIES, PUBLIC POLICY, PUBLIC PROVISION, PUBLIC RESOURCES, PUBLIC SCHOOL, PUBLIC SCHOOLS, PUBLIC SERVICE, PUBLIC SPENDING, PUBLIC SPENDING LEVELS, PUBLIC SUBSIDIES, QUALITY SERVICE, RATES OF RETURN, REDISTRIBUTION, REDISTRIBUTIVE EFFECTS, REDISTRIBUTIVE IMPACT, REVENUE COLLECTION, SANITATION, SANITATION SERVICES, SAVINGS, SCHOOL FEES, SERVICE PROVISION, SEXUAL PRACTICES, SINGLE PARENT, SOCIAL SECURITY, SOCIAL WELFARE, SOCIOECONOMIC BACKGROUND, SUBNATIONAL, TAX, TAX BURDENS, TAX INCIDENCE, TAX SYSTEMS, TAXATION, TOTAL PUBLIC SPENDING, UNIVERSAL ACCESS, URBAN AREAS, VOUCHER, VULNERABLE GROUPS, WELFARE LEVEL, WELFARE STATES, targeting, microsimulations,
Online Access:http://documents.worldbank.org/curated/en/2013/06/17875875/social-spending-distribution-equality-opportunities-opportunity-incidence-analysis
https://hdl.handle.net/10986/15848
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Summary:Existing evidence forms a body of "conventional wisdom" on the redistributive impact of fiscal policies that has been recently questioned by more disaggregated analyses. This paper proposes an additional extension to the traditional benefit incidence analysis to explore further the extent to which the conventional wisdom holds, as well as to provide effective guidance in fiscal decision making. The benefit incidence analysis extension includes linking fiscal policies with the concept of equality of opportunities. The paper describes this approach and showcases the application of the proposed "opportunity incidence analysis" to six pilot countries: Liberia, Cote d Ivoire, Zambia, Tajikistan, Thailand, and Paraguay. Three main contributions stand out: first, opportunity incidence analysis complements traditional benefit incidence analysis by applying its mechanics to a more forward looking concept of equal opportunity. Second, opportunities can be used to target public spending with higher precision. Third, micro-simulations can be used to understand the cost-effectiveness of alternative spending interventions that seek to improve equality of opportunities. All of these results complement the diagnosis produced by traditional incidence analysis and provide useful information to guide specific policy decisions.