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Dalton-Improving Indirect Tax Reform

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Author Info
Mayshar, Joram
Yitzhaki, Shlomo

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Abstract

A tax reform is 'Dalton-improving' if it improves social welfare for all possible social-welfare functions that conform to Hugh Dalton's principle of transfers. According to this principle, there exists a prior social ranking of households and a transfer is approved if it it distributes from high-ranking ('rich') to low-ranking ('poor') households, without altering the ranking itself. In this paper, the authors develop a procedure for identifying marginal Dalton-improving reforms in the context of indirect taxation. The methodology is illustrated using data on excise taxes in the United Kingdom. Copyright 1995 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 85 (1995)
Issue (Month): 4 (September)
Pages: 793-807
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Handle: RePEc:aea:aecrev:v:85:y:1995:i:4:p:793-807

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  1. Essama-Nssah, B., 2004. "A unified framework for pro-poor growth analysis," Policy Research Working Paper Series 3397, The World Bank. [Downloadable!]
  2. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Reducing Tax Reforms with Heterogeneous Agents," Cahiers de recherche 0313, CIRPEE. [Downloadable!]
    Other versions:
  3. Shlomo Yitzhaki, 2001. "A Public Finance Approach to Assessing Poverty Alleviation," NBER Working Papers 8062, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Alfredo Serrano Mancilla, 2006. "Reformas socialmente eficientes del IVA en España," Investigaciones Economicas, Fundación SEPI, vol. 30(2), pages 381-398, May. [Downloadable!]
  5. Ajitava Raychaudhuri & Sudip Kumar Sinha & Poulomi Roy, 2007. "Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States," Cahiers de recherche PMMA 2007-18, PEP-PMMA. [Downloadable!]
  6. Heshmati, Almas, 2004. "Data Issues and Databases Used in Analysis of Growth, Poverty and Economic Inequality," IZA Discussion Papers 1263, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Abdelkrim Araar & Yazid Dissou & Jean-Yves Duclos, 2008. "Household Incidence of Pollution Control Policies: a Robust Welfare Analysis Using General Equilibrium Effects," Cahiers de recherche 0809, CIRPEE. [Downloadable!]
    Other versions:
  8. Alessandro Santoro, 2005. "Marginal commodity tax reforms: a survey," Public Economics 0508017, EconWPA. [Downloadable!]
  9. Paolo Liberati, 2001. "The Distributional Effects of Indirect Tax Changes in Italy," International Tax and Public Finance, Springer, vol. 8(1), pages 27-51, January. [Downloadable!] (restricted)
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