The distributional impact of fiscal policy in Croatia

Commissioned by: World Bank
Project duration: November 20, 2020 – June 30, 2021
Project manager: Ivica Rubil 

Summary: 
In recent years, governments around the world are increasingly interested in assessing how effective their current fiscal policies are in promoting inclusive growth, expanding opportunities and accelerating poverty reduction. Common questions asked by policy makers and civil society are: (i) How progressive are the tax and social assistance systems? (ii) Can public taxes and social expenditures better redistribute opportunities so that a more equitable system promotes sustained growth? (iii) Who benefits from public services?
 
Aims of the project were: (1) analysis of the incidence of taxes, social benefits and other public spending, and their distributive impact in Croatia; (2) development of a microsimulation model for simulation of taxes and social benefits. The analysis and the microsimulation model were based on the data from the Household Budget Survey and the Survey on Income and Living Conditions.
 

RESEARCH AREAS: Inequality, poverty and social policy; Croatian economy