Dear Writer 3684.
I would like help to continue with my MSc Dissertation in Economics.
My dissertation is to do a SYSTEMATIC LITERATURE REVIEW on the theme of:
DISTRIBUTIONAL EFFECTS OF INCOME TAX IN PERU COMPARED WITH THE REST OF SOUTH AMERICA.
May I give the following stages that I must follow in order to do this dissertation? It also gives information on what is required for each stage:
Assignment A .has been done – an initial one page outline of my dissertation topic which includes.:
• A description of the problem or issue that I am investigating (in one paragraph);
• The theoretical framework I intend to use, i.e. the origin of the problem in the literature with at least one key reference;
• An explanation of the aims and objectives of the dissertation, and the methodology I intend to use i.e. in my case, a literature review.
• A reference to at least one article that has informed my proposal, that can show what I intend to do and how to do it probably in another context, with different data set, another country coverage etc.
THIS IS VERBATIM THE ASSIGMENT A WHICH I SUBMITTED TO THE UNI. FOR THE ONE PAGE OUTLINE:
Title: Distributional Effects of Income Tax in Peru Compared with the rest of South America
Introduction
• Problem Definition: Income Taxes inequality in Peru compared with the rest of South America.
• Issue Description: Income inequality in Peru in comparison with the rest of South America has had an adverse effect on the economic welfare of the nation which require for the revision of tax policies and systems. The tax amendments have been ineffectual in reducing inequality as evidenced by Peru, as the worst hit nation in the region with regard to the inequality and economic disparities.
Theoretical Framework
Origin of the Problem: Peru’s taxation system instituted in the 1960s is regressive in nature stemming from the fact that the taxes levied on the nation focused on the creation of horizontal tax equity as opposed to vertical tax equity. Consequently, the amount of income redistribution has been very low leading to decreased economic welfare. (Musgrave R. ND Musgrave P. (1920) “Hacienda Publica: Teorica y Aplicadaâ€ÂÂ).Additionally, tax has been imposed more on sales as opposed to personal incomes which reduces its redistributive ability. I will use the Peruvian nation compared with the rest of South America. (Jinemez, J.P., Juan C.G.S& Andrea, P. (2010). Tax gap and equity in Latin America and the Caribbean. Public Finance and Administrative Reform Studies).
Literature Review
• Aims of my Dissertation: It will be to the theme of the discussion and methodology to be employed is a systematic literature review. This will be based on the literature that measures the effects of taxes and income distribution in South America. It will apply past literature on the topic of Income inequality in Peru to determine how the problem can be best alleviated.
• Objectives of my Dissertation: Focus on the tax policy analysis to determine the origin of the problem. Only peer reviewed articles and credible internet sources will be used for information gathering and analysis.
Conclusion
The effects of different tax policies to reduce inequality will be analysed. Pragmatic recommendations will be offered at the end of my study for implementation towards the alleviation of the income distribution problem in the nation.
References
Jinemez, J P., Juan C.G.S & Andrea, P. (2010), Tax gap and equity in Latin America and the Caribben.Public Finance and Administrative Reform Studies,
Musgrave R. and Musgrave P. (1992) “Hacienda publica: Teorica y aplicadaâ€ÂÂ
THE FEEDBACK I RECEIVED TO THE ABOVE IS AS FOLLOWS:
A GOOD AND STRUCTRURAL FRAMEWORK FOR THE DISSERTATION. NOT CLEAR HOW THE REFERENCES WERE USUAL AND TO WHAT EXTENT THEY WERE USEFUL REFORM OF THE PROPOSAL. AS THIS PROPOSAL IS HER LITERATURE REVIEW THE WAY OF REFERENCES IS CENTRAL. A SCREEN THE HARRARD SYSTEM OF REFERENCING TO UNDERSTAND HOW TO USE A SHORT FORM ON THE TEXT.
Now that the one-page outline has been submitted I must do the detailed outline as described below (Assignment B):
To do Assignment B-
Is a detailed outline of my proposed dissertation (4-5 pages, including structure, content, methodology, sources, etc.) this should include: a revised and more elaborated statement of my first ideas included in the one page proposal, plus:
• A brief description of the chapter structure of my dissertation;
• references to the literature on which I intend to base my theoretical and methodological sections (not a comprehensive list, but 10-12 core references as a guide);
• precise data sources I intend to use (their availability, the geographical coverage, the number of observations, whether time series are available annually, quarterly etc.); it is no use simply saying I expect to use a particular data source, the university needs me to show both that I understand the data and that I have access to it;
Can you use the following as a basis for Assignment B, but it needs some developing:
Income and distributional inequality in Latin America has been a significant problem in terms of economic progression warranting the revisions of tax policies and systems in a bid to overcome the problem (Jimenez, Juan, & Andrea, 2010). However, it has been noted that the tax reforms have done little in the alleviation of these inequalities with Peru being the worst hit of all nations. Latin America has adopted a progressive system of taxation that charges different levels of income tariffs to its natives. Progressive taxation institutes a fixed percentage of tax on an individual’s income level such that low earning individuals tend to be charged low levels of tax while high-income earners contribute more taxes to the government. However, equity is achieved in that the charges maintain a similar proportional charge transversing across all income level groups. Unlike the other Latin American nations, Peru’s income tax is presently highly unequal as it conforms to a regressive pattern as opposed to the desired progressive nature of discriminatory taxation. Mahon (2009), notes that the regressive nature of Peru’s taxation system is because of its Value Added Tax (VAT) and other indirect forms of taxation.
Theoretical evidence traces the problem to the late twentieth century period, with the taxation systems being retrogressive in nature. Latin America adopted tax reforms initially in the 1960s with the focus being the “expansion of the value-added tax (VAT), significant cuts in trade tariffs, and the strengthening of tax administration…with these reforms, redistribution became a secondary goal of tax design rather than a primary one,†(Mahon, 2009, p.3-4). This strategy only ensured income redistribution equality on a horizontal setting where equity was only achieved in households that shared the same levels of income. Vertical (progressive) equity that ensures an association across various income levels was side-lined during the reforms. Fiscal policies used during this period therefore aimed at achieving higher redistribution revenue levels through enhanced parallel households’ equity that would ensure economic liberalization.
To achieve horizontal equity, the Peruvian government focused on indirect taxes that up to date constitute to the highest revenue avenues. Note that, personal income taxes as compared to corporate (indirect) income taxes achieve a higher redistribution as they are achieved by a higher populace than the latter. This has been the root problem of Latin American as the reliance on indirect taxes has only realized very limited distributional effects as in the long-term period the resource base has diminished considerably (Haughton, 2005). Peru has a peculiar trend with regard to its fiscal policy as unlike the other regions of Latin America, it has combined both its direct and indirect income taxes in its economy only to result into enhanced inequality. The theoretical framework to be used in this study will therefore offer an in-depth discussion and analysis of the origin of the Peruvian income distributive problem. Additionally, we shall review how this problem relates to its poor fiscal policy management and implementation.
The dissertation’s aims and objectives will relate to the theme of the discussion and the methodology to be employed is a literature review. This means that the adapt used will be acquired from secondary peer-reviewed sources that contain earlier research material on the study topic and the subsequent conclusions that will be of significant help to the background of the problem and the relevant advances that have been made to avoid repetition and information redundancy. Haughton’s publication, Tax and Expenditure Incidence in Peru, is a very helpful resource for thesis direction as it offers a systematic methodology that revolves under the Peruvian economy and the different areas in which the government acquires tax. Additionally, the distributive aspects of each tax are reviewed providing a deeper analysis into the subject. Cubero and Ivanna’s (2010) publication offers a good format that can be combined with a different set of data for the thesis.
References:
Bargain, O., & Tim, C. (2010). Analysing the Effects of Tax-benefit Reforms on Income Distribution: A Decomposition Approach. Journal of Economic Inequality, 8 (1), 1-21.
Cubero, R., & Ivanna, V. H. (2010). Equity and Fiscal Policy: The Income Distribution Effects of Taxation and Social Spending in Central America. IMF Working Paper, WP/10/112. Retrieved from www.imf.org/external/pubs/ft/wp/2010/wp10112.pdf
Haughton, J. (2005). Tax and Expenditure Incidence in Peru. Retrieved from www.comunidadandina.org/economia/fiscal_Haughton.pdf
Jinemez, J. P., Juan, C. G. S., & Andrea, P. (2010). Tax gap and equity in Latin America and the Caribbean. Public Finance and Administrative Reform Studies, 16, 1-44.
Mahon, J. (2009). Tax Reforms and Income Distribution in Latin America. Latin America Studies Association. Retrieved from lasa.international.pitt.edu/members/congress…/MahonJames.pdf
LATER I WOULD NEED TO DO:
Assignment C- will be formal presentation of 10 minutes with a few ppt slides (also March 2011) in refer to assignment B.
Could you please help me for assignment B as described above i.e. the second stage, following the requirements as stated above including the research.
It is very important we need to work together; please be in touch with me during the process as I need to be aware of the resources/ research that you are using.
I am looking forward to hearing from you soon.
