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CEQ concepts

We describe here the various income concepts used by the CEQ framework.

market income (market_income)

  • Earned and Unearned Incomes of All Possible Sources and Excluding Government Transfers (all_income_excluding_transfers)
  • Gifts, proceeds from sale of durables (gifts_sales_durables).
  • Alimony (alimony)
  • Autoconsumption (autoconsumption)
  • Imputed rent for owner occupied housing (imputed_rent)
  • Other (add more rows if needed) (other_income)
market_income = (
    all_income_excluding_transfers
    + gifts_sales_durables
    + alimony
    + autoconsumption
    + imputed_rent
    + other_income
    )

market income plus pensions = market income + pensions - contributions to pensions

  • Old-age contributory pensions (pensions)
  • Total contributions to social security for old-age pensions (contributions_pensions)
    • Employer contributions to social security for old-age pensions (employer_contributions_pensions)
    • Employee contributions to social security for old-age pensions (employee_contributions_pensions)
    • Self-employed contributions to social security for old-age pensions (self_employed_contributions_pensions)
  • Other (add more rows if needed)
market_income_plus_pensions = market_income + pensions - contributions_pensions

net market income= market income + pensions - contributions_pensions - (direct taxes and contributions to social security that are not directed to old-age pensions)

  • Direct Taxes (direct_taxes)
    • Personal Income Tax (personal_income_tax)
    • Corporate Income Tax (corporate_income_tax)
    • Payroll Tax (payroll_tax)
    • Taxes on Property (property_tax)
    • Other (add more rows if needed) (other_taxes)
  direct_taxes = (
      personal_income_tax
      + corporate_income_tax
      + payroll_tax
      + property_tax
      + other_taxes
      )
  • Total contributions to social security for health (contributions_health)
    • Employer contributions to social security for health (employer_contributions_health)
    • Employee contributions to social security for health (employee_contributions_health)
    • Self-employed contributions to social security for health (self_employed_contributions_health)
contributions_health = (
    employer_contributions_health
    + employee_contributions_health
    + self_employed_contributions_health
    )
  • Total contributions to social security for other contributory programs (such as unemployment insurance) (other_contributions)
    • Employer contributions to social security for other contributory programs (such as unemployment insurance and others) (employer_other_contributions)
    • Employee contributions to social security for other contributory programs (such as unemployment insurance) (employee_other_contributions)
    • Self-employed contributions to social security for other contributory programs (such as unemployment insurance) (self_employed_other_contributions)
other_contributions = (
    employer_other_contributions
    + employee_other_contributions
    + self_employed_other_contributions
    )

net_market_income = market_income_plus_pensions - (direct_taxes + contributions_health + other_contributions)

gross income = market income plus pensions + direct transfers

  • Social Protection (direct_transfers)
    • Social Assistance (social_assistance)
      • Conditional and Unconditional Cash Transfers (cash_transfers)
        • ADD one row per program analyzed
      • Noncontributory Pensions (noncontributory_pensions)
      • Near Cash Transfers (Food, School Uniforms, etc.) (near_cash_transfers)
        • Add one row per program analyzed
    • Social Insurance (social_insurance)
      • Other social insurance transfers different from old-age pensions (add more rows if needed)
social_assistance = cash_transfers + noncontributory_pensions + near_cash_transfers
direct_transfers = social_assistance + social_insurance
gross_income = market_income_plus_pensions + direct_transfert

taxable income = gross_income - nontaxable_income

taxable_income = gross income - nontaxable income
  • Add rows if needed

disposable income = net market income + direct government transfers

disposable_income = net_market_income + direct_transfers

private consumption

consumable income = disposable income + indirect subsidies - indirect taxes

  • Indirect taxes
    • VAT
    • Sales Tax
    • Excise Taxes
      • Add one row per excise tax analyzed
    • Customs Duties
      • Other (add more rows if needed)
  • Indirect subsidies
    • Electricity
    • Fuel
    • Food
    • Agricultural Inputs
    • Other (add more rows if needed)
consumable_income = disposable_income + indirect_subsidies - indirect_taxes

final income = consumable income + government in-kind transfers

  • Education (education_net_transfers)
    • Pre-school (pre_school)
    • Primary (primary_education)
    • Secondary (secondary_education)
    • Post-secondary non-tertiary (post_secondary_education)
    • Tertiary (tertiary_education)
    • School Fees (school_fees)
education_net_transfers = (
    pre_school
    + primary_education
    + secondary_education
    + tertiary_education
    - school_fees
    )
  • Health (health_net_transfers)
    • Contributory (health_contributory)
    • Noncontributory (health_noncontributory)
    • In-patient (health_in_patient)
    • Out-patient (health_out_patient)
    • Copayments or Fees (health_copay_fees)
health_net_copay_fees = (
  health_contributory
  + health_noncontributory
  - health_in_patient
  - health_out_patient
  - health_copay_fees
  )
  • Housing (housing_transfers)
in_kind_transfers = (
  education_net_transfers
  + health_net_transfers
  + housing_transfers
  )

final_income = consumable_income + in_kind_transfers

Issues : market income

What should we do with corporate_income_tax ?

  • simple for the self-employed
  • distribute macro aggregate using distribution of capital income in the survey (?)