CIPR | Center For Inter-American Policy & Research

Tulane University

CEQ Working Paper No 1: Commitment to Equity (CEQ) Handbook


Commitment to Equity Assessment (CEQ): Estimating the incidence of Social Spending, Subsidies and Taxes
Working Paper No. 1

A working document by:
Nora Lustig
Samuel Z. Stone Professor of Latin American Economics, Tulane University and Non-resident Senior Fellow at the Center for Global Development and Inter-American Dialogue
Sean Higgins
Doctoral student of PhD in Economics, Tulane University

Abstract
This handbook presents a step-by-step guide to applying the incidence analysis used in the multi-country Commitment to Equity project (CEQ). We define the pre- and post-net transfers income concepts, discuss the methodological assumptions used to construct them, explain how taxes, subsidies and transfers should be allocated at the household level, and suggest what to do when the information on taxes and transfers is not included in the household survey. We also describe the indicators that are used to assess the distributive impact, progressivity and effectiveness of social spending, subsidies and taxes. In addition, we present sample Stata code for producing some of the indicators. (For more on CEQ visit www.commitmentoequity.org)

Access the working document here:
Updated September 2013
CEQ Assessment Handbook

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