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dc.titleHelping Governments to Make Fiscal Policy More Equitable with LAPEF
dc.contributor.authorAstudillo, Karen
dc.contributor.authorPessino, Carola
dc.contributor.orgunitFiscal Management Division
dc.contributor.orgunitInstitutions for Development Sector
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2025-09-04T00:09:00
dc.date.issue2025-09-04T00:09:00
dc.description.abstractThe Laboratory of Policies for Fiscal Equity (LAPEF) aims to help Latin American and Caribbean governments design and implement more equitable fiscal policies. Traditionally focused on efficiency and growth, fiscal policy in the region has struggled with structural inequality and limited redistributive capacity. LAPEF addresses this gap by offering tools and microsimulation models that assess the impact of tax and spending reforms on household income, poverty, and inequality. These models use household surveys, fiscal legislation, and administrative data to simulate policy outcomes before implementation. LAPEF promotes a holistic approach that integrates equity, efficiency, and sustainability. It enables governments to identify winners and losers of fiscal reforms, design compensation mechanisms, and reduce work disincentives. Key tools include country-specific incidence analysis, personalized VAT simulations, and a fiscal intelligence ecosystem for targeted interventions. LAPEF also supports the creation of fiscal equity institutions within ministries of finance to ensure long-term policy effectiveness. By grounding decisions in real-world data and robust institutions, LAPEF empowers governments to build fairer, more inclusive economies. The Inter-American Development Bank invites fiscal leaders to collaborate and leverage LAPEFs methodologies to advance equitable fiscal policy across the region.
dc.format.extent7
dc.identifier.doihttp://dx.doi.org/10.18235/0013683
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Helping-Governments-to-Make-Fiscal-Policy-More-Equitable-with-LAPEF.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectFiscal Rule
dc.subjectEquality
dc.subjectFiscal Policy
dc.subjectTaxation
dc.subjectPublic Expenditure
dc.subjectFiscal Sustainability
dc.subjectEquality of Opportunity
dc.subjectPoverty
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeH24 - Personal Income and Other Nonbusiness Taxes and Subsidies
dc.subject.jelcodeH53 - Government Expenditures and Welfare Programs
dc.subject.jelcodeD63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
dc.subject.keywordsfiscal equity;tax policy;public spending;Inequality;redistribution;microsimulation;Latin America;fiscal sustainability
dc.typeCatalogs and Brochures
idb.identifier.pubnumberIDB-CB-01080
idb.operationRG-T4198
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