The Equity Effects of Cadasters in Colombia

Well-functioning cadasters help to secure property rights, make economies perform more efficiently and promote environmental conservation. However, their equity effects are less known. Our study addresses how and to what extent cadasters, and reforms to them, affect equity. The authors address this...

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Main Authors: Cuesta, Jose, Pico, Julieth
Format: Journal Article
Language:English
Published: Taylor & Francis 2022
Subjects:
Online Access:http://hdl.handle.net/10986/37409
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recordtype oai_dc
spelling okr-10986-374092022-05-12T05:10:36Z The Equity Effects of Cadasters in Colombia Cuesta, Jose Pico, Julieth CADASTER EQUITY PROPERTY TAXES POVERTY REDISTRIBUTION COLOMBIA Well-functioning cadasters help to secure property rights, make economies perform more efficiently and promote environmental conservation. However, their equity effects are less known. Our study addresses how and to what extent cadasters, and reforms to them, affect equity. The authors address this question through an ex-ante simulation methodology using static partial equilibrium fiscal incidence analysis. We apply it to a recent expansion of the cadaster in Colombia, designed as a deliberate equalization strategy in one of the world’s most unequal countries. This expansion will increase the collection of property taxes paid by previously informal households by about US 22.1 million dollars and their net worth by about US 4,993 million dollars (or about 3.2 and 4.9 percent of their baseline value). However, the expansion of the cadaster will also increase the incidence of poverty (by 0.25 percent points), the poverty gap (by 0.20 percent points) and inequality (by 0.12 percent points of the Gini index), unless generous compensatory interventions are applied. We conclude that equity effects of cadasters are complex and multiple. Policy-wide, compensatory measures are needed to alleviate the immediate impacts on poverty and inequality after the increase in taxes that vulnerable and poor households will likely face following a cadaster reform. 2022-05-11T07:26:05Z 2022-05-11T07:26:05Z 2021-08-01 Journal Article Journal of Development Studies http://hdl.handle.net/10986/37409 en CC BY-NC-ND 3.0 IGO https://doi.org/10.1080/00220388.2021.2008365 World Bank Taylor & Francis Publications & Research :: Journal Article Europe and Central Asia Colombia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CADASTER
EQUITY
PROPERTY TAXES
POVERTY
REDISTRIBUTION
COLOMBIA
spellingShingle CADASTER
EQUITY
PROPERTY TAXES
POVERTY
REDISTRIBUTION
COLOMBIA
Cuesta, Jose
Pico, Julieth
The Equity Effects of Cadasters in Colombia
geographic_facet Europe and Central Asia
Colombia
description Well-functioning cadasters help to secure property rights, make economies perform more efficiently and promote environmental conservation. However, their equity effects are less known. Our study addresses how and to what extent cadasters, and reforms to them, affect equity. The authors address this question through an ex-ante simulation methodology using static partial equilibrium fiscal incidence analysis. We apply it to a recent expansion of the cadaster in Colombia, designed as a deliberate equalization strategy in one of the world’s most unequal countries. This expansion will increase the collection of property taxes paid by previously informal households by about US 22.1 million dollars and their net worth by about US 4,993 million dollars (or about 3.2 and 4.9 percent of their baseline value). However, the expansion of the cadaster will also increase the incidence of poverty (by 0.25 percent points), the poverty gap (by 0.20 percent points) and inequality (by 0.12 percent points of the Gini index), unless generous compensatory interventions are applied. We conclude that equity effects of cadasters are complex and multiple. Policy-wide, compensatory measures are needed to alleviate the immediate impacts on poverty and inequality after the increase in taxes that vulnerable and poor households will likely face following a cadaster reform.
format Journal Article
author Cuesta, Jose
Pico, Julieth
author_facet Cuesta, Jose
Pico, Julieth
author_sort Cuesta, Jose
title The Equity Effects of Cadasters in Colombia
title_short The Equity Effects of Cadasters in Colombia
title_full The Equity Effects of Cadasters in Colombia
title_fullStr The Equity Effects of Cadasters in Colombia
title_full_unstemmed The Equity Effects of Cadasters in Colombia
title_sort equity effects of cadasters in colombia
publisher Taylor & Francis
publishDate 2022
url http://hdl.handle.net/10986/37409
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