| Popis: |
Governments in Latin America and the Caribbean (LAC) often raise the VAT to reduce the fiscal deficit. These VAT increases, however, disproportionately harm lower income households. This project examines public support for fiscal adjustment, in particular an increase in the VAT, and for different compensation schemes that mediate the regressive impact of the VAT on the poor. Theoretically, the project explores how fairness and trust considerations as opposed to personal material interests affect support for compensated fiscal adjustment. To examine public attitudes, we conduct individual-level surveys in 8 countries in Latin America and the Caribbean: Argentina, Brazil, Chile, Costa Rica, Colombia, Guatemala, Mexico, and Peru, with a total of 12’000 respondents. |
