Home >> Working Paper
The Impacts of Public Transfers on Income Distribution and Poverty in China
Read        DownLoad
TitleThe Impacts of Public Transfers on Income Distribution and Poverty in China  
AuthorXie E  
OrganizationSchool of Economics, Shandong University 
Key WordsPublic Transfers; Poverty; Income Inequality; Integrated Computable General Equilibrium and Microsimulation 
AbstractWhen doubling public transfers,government balance is held fixed with two different financing options, one of financing options is increase in direct taxes to households and firms, another one is increase in indirect taxes, based on a linked top-down, bottom-up (TD-BU) model which combines an econometrically-estimated microsimulation (MS) model and a computable general equilibrium (CGE) model, this paper analyze the impact of public transfers on income inequality and poverty in China. The results show that there is an increase in consumption and minor reduction in labor supply for option of direct taxes. Option of direct tax gives a higher reduction in income inequality than option of indirect tax. Doubling social assistance transfers leads to a 2 percentage point reduction in poverty if we use option of direct taxes and 1 percentage point reduction if we use option of indirect tax. 
Serial NumberWP1140 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153