01938cas a2200277 a 4500 AALejournalIMF018589 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484363034 1018-5941 BD-DhAAL BD-DhAAL Peralta-Alva, Adrian. The Macroeconomic and Distributional Implications of Fiscal Consolidations in Low-income Countries / Adrian Peralta-Alva, Marina Mendes Tavares, Xuan Tam, Xin Tang. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We quantitatively investigate the macroeconomic and distributional impacts of fiscal consolidations in low-income countries (LICs) through value added tax (VAT), personal income tax (PIT), and corporate income tax (CIT). We extend the standard heterogeneous agents incomplete markets model by including multiple sectors and rural-urban distinction to capture salient features of LICs. We find that overall, VAT has the least efficiency costs but is highly regressive, while PIT impacts the economy in the opposite way with CIT staying in between. Cash transfers targeting rural households mitigate the negative distributional impacts of VAT most effectively, while public investment leads to little redistribution. Mode of access: Internet Mendes Tavares, Marina. Tam, Xuan. Tang, Xin. IMF Working Papers; Working Paper ; No. 2018/146 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/146/001.2018.issue-146-en.xml IMF e-Library