Project “REDISHR” is implemented within the framework of the National Recovery and Resilience Plan 2021–2026 and is financed by European Union funds through the NextGenerationEU instrument.
The project aims to establish an integrated framework for a comprehensive analysis of income distribution, the extent of redistribution, and the effects of redistributive policies in Croatia. It will produce the first Distributional National Accounts for Croatia by integrating administrative data, household surveys, and national accounts, thereby providing an empirically grounded representation of the distribution of national income before and after taxation. This will enable a reliable assessment of the overall progressivity of the tax system, the effects of fiscal instruments, and the potential for their redesign. Using administrative data, the project will apply modern econometric methods to estimate the optimal degree of tax progressivity. In addition, it will conduct extensive survey and experimental research on citizens’ preferences regarding inequality and redistribution, including an empirical estimation of the so-called riches line. The project thus links the analysis of actual income distribution with the study of citizens’ normative attitudes, offering an integrated framework for the design of fairer and more efficient public policies in Croatia.