Time: 1:00 - 2:00pm Speaker: Professor Sugata Marjit Venue: FB 4.04/08
SBM Host: Professor Sushanta Mallick, Professor of International Finance
Presenter: Professor Sugata Marjit, Centre for Studies in Social Sciences, Calcutta (CSSSC), India, Centre for Training and Research in Public Finance and Policy at CSSSC, India GEP, Nottingham, UK and CESIfo, Munich, Germany
Title of Paper: Distribution Neutral Fiscal Policy-Theory and Application
Abstract
Distribution Neutral Fiscal Policy (DNFP) refers to the set of taxes and transfers which keep the income distribution unchanged over the relevant time period under consideration by the govt. Rising inequality within nations , in particular, within relatively affluent countries ,has impacted profoundly on the political and economic landscape of these countries. DNFP is the first attempt to extend Pareto’s well known welfare criterion that focuses only on absolute compensation by introducing distribution neutrality as a welfare and fiscal monitor. We introduce a notion of INEQUALITY CONVERGENCE and argue why richer countries will find it tougher to pursue such a policy.