Ftomova O. Poverty and inequality: corrective effects of fiscal policy

Object – poverty and inequality in Ukraine and European countries; goal – substantiation of directions of reforming the fiscal system of Ukraine to reduce poverty and inequality, improvement of scientific and methodological approaches to determining the most effective fiscal measures in current conditions; methods – analysis and synthesis, analogies, system analysis, induction and deduction, system-structural analysis; abstract-logical, statistical, correlation analysis; vector autoregression; scenario modeling; novelty – a holistic scientific approach to the formation of the principles of state fiscal policy in order to reduce poverty and inequality; guided by the concept of inclusive growth, a tripartite macroeconomic approach to the study of poverty, inequality and economic growth has been presented; based on the application of econometric modeling, the most sensitive instruments of fiscal policy are identified, an effective design of fiscal policy in the medium term under the conditions of modern Ukraine is formed; theoretical and practical results – formed scientific and methodological approaches to scenario modeling of poverty and inequality depending on the variation of fiscal reforms in four scenarios in the medium term; developed scientific and methodological approaches to modeling on the basis of VAR processes of the relationship between poverty, inequality, economic growth and studied this relationship in terms of impulse response to positive fiscal shocks; improved scientific and methodological approaches to the study of the impact of fiscal instruments on the dynamics of poverty, inequality through modeling of these processes by methods of correlation analysis; a scientific approach is developed, according to which it is expedient to differentiate three channels (human capital development, labor market, investment and taxation) of the direct impact of fiscal policy on poverty and inequality; developed consideration of inclusiveness as a macroeconomic category that affects the effectiveness of fiscal policy to reduce poverty and inequality; the results of the study are implemented in economic practice.