Theoretical and Applied Economics
No. 1 / 2023 (634), Spring
Analysis of the effects of social and fiscal policy on incomes during the COVID-19 pandemic in Romania
National Scientific Research Institute for Labour and Social Protection
Amalia CRISTESCU
National Scientific Research Institute for Labour and Social Protection
Silvana BOBÂRNAT
National Scientific Research Institute for Labour and Social Protection
Abstract. The increase in income inequalities from one period to another for certain vulnerable groups are realities faced by most countries of the world, and these aspects have been accentuated by the effects of the measures imposed as a result of the COVID-19 pandemic. These situations first oblige governments to take concentrated and integrated actions in order to improve the effects of these phenomena on people's well-being and social inequalities. The main mechanism by which the state ensures a more equitable distribution of income is the system of social benefits, along with the system of direct and indirect taxation. In this study, we evaluated the capacity of the social benefits system, respectively of the direct and indirect taxation systems, to contribute to the reduction of inequalities and the increase of the population's well-being in Romania. For this purpose, income microsimulation techniques were applied on microdata from the Household Budget Survey for Romania and indicators to evaluate income redistribution and progressivity of the tax-benefit system were calculated. The results were discussed for detailed tax and benefit instruments and compared in the light of progressivity and effectiveness in inequality reduction. Following the analysis, no significant changes in the estimated redistributive effects were observed in 2020 compared to previous years, although the year 2020 was affected by the COVID-19 crisis.
Contents
Obstacles to innovation and policy implications: exploring the case of Romanian firms
Adjusting the 5C pentagon for better health policymaking: observing the leading behavioural risks factors (diet, smoking, and alcohol consumption)
Incentivizing CEOs via pay and forced turnover: Do tenure and managerial ability matter?
Forecasting the Romanian inflation rate: An Autoregressive Integrated Moving-Average (ARIMA) approach
The effects of geopolitical risks on tourism revenues of the Middle East and Asian countries
The potential of macroeconomic forces and ICT in affecting the sectorial growth: ARDL approach in the context of East Asian countries
Validity of asset pricing models in Istanbul Stock Exchange (ISE) information technology index
Dynamic relationship between external debt and unemployment in Sub-Saharan Africa
An analysis of factors influencing empowerment of rural women through Deendayal Antyodaya Yojana – National Rural Livelihood Mission (SGSY)
The impact of Covid-19 payment moratoria on the Romanian banking system
Uncertainty and monetary policy during the Covid-19 pandemic in Tunisia: Evidence from a Bayesian VAR
Research on the evolution of migration in Romania after the fall of the communist regime
Black Sea and East Mediterranean approach on sustainable development
An economic analysis of trade war and deglobalization in current international relations within the paradigm of globalization
Financial difficulties and economic recession: Evidence from Canadian seniors
Inflation targeting and exchange rate pass-through in India: Lessons from international experience
The circular economics of constructions
Market mood index and stock market. Evidence from National Stock Exchange
Analysis of the effects of social and fiscal policy on incomes during the COVID-19 pandemic in Romania