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Socially Improving Tax Reforms

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Author Info
Jean-Yves Duclos
Paul Makdissi
Quentin Wodon

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Abstract

This article proposes graphical methods to determine whether commodity tax changes are "socially improving," in the sense of improving social welfare or decreasing poverty for large classes of social welfare and poverty indices. It also shows how estimators of critical poverty lines and economic efficiency ratios can be used to characterize socially improving tax reforms. The methodology is illustrated using Mexican data. Copyright © (2008) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2354.2008.00520.x
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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 49 (2008)
Issue (Month): 4 (November)
Pages: 1505-1537
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Handle: RePEc:ier:iecrev:v:49:y:2008:i:4:p:1505-1537

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Thistle, Paul D., 1993. "Negative Moments, Risk Aversion, and Stochastic Dominance," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 28(02), pages 301-311, June. [Downloadable!]
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  7. Buhong Zheng, 1999. "On the power of poverty orderings," Social Choice and Welfare, Springer, vol. 16(3), pages 349-371. [Downloadable!] (restricted)
  8. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September. [Downloadable!] (restricted)
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  10. Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April. [Downloadable!] (restricted)
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  16. Donaldson, D., 1990. "On The Aggregation Of Money Measures Of Well-Being In Applied Welfare Economics," UBC Departmental Archives 90-12, UBC Department of Economics.
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  17. Rolf Aaberge, 2004. "Ranking Intersecting Lorenz Curves," CEIS Research Paper 45, Tor Vergata University, CEIS. [Downloadable!]
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  18. Fishburn, Peter C. & Willig, Robert D., 1984. "Transfer principles in income redistribution," Journal of Public Economics, Elsevier, vol. 25(3), pages 323-328, December. [Downloadable!] (restricted)
  19. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July. [Downloadable!] (restricted)
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  21. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Reducing Tax Reforms with Heterogeneous Agents," Cahiers de recherche 0313, CIRPEE. [Downloadable!]
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  22. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    Other versions:
  23. Yitzhaki, Shlomo & Lewis, Jeffrey D, 1996. "Guidelines on Searching for a Dalton-Improving Tax Reform: An Illustration with Data from Indonesia," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 541-62, September.
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  25. Davies James & Hoy Michael, 1994. "The Normative Significance of Using Third-Degree Stochastic Dominance in Comparing Income Distributions," Journal of Economic Theory, Elsevier, vol. 64(2), pages 520-530, December. [Downloadable!] (restricted)
    Other versions:
  26. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December. [Downloadable!] (restricted)
  27. Yitzhaki, Shlomo & Slemrod, Joel, 1991. "Welfare Dominance: An Application to Commodity Taxation," American Economic Review, American Economic Association, vol. 81(3), pages 480-96, June. [Downloadable!] (restricted)
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  28. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mario Fortin & Andre Leclerc & Jean-Baptiste Nesmy, 2006. "L’impact des opérations transactionnelles sur la croissance de la productivité dans le secteur bancaire," Cahiers de recherche 06-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  2. Makdissi, Paul & Mussard, Stéphane, 2006. "Between-Group Transfers and Poverty-Reducing Tax Reforms," IRISS Working Paper Series 2006-10, IRISS at CEPS/INSTEAD. [Downloadable!]
    Other versions:
  3. 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!]
  4. 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!]
  5. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Intra-Country Distributional Impact of Policies to Fight Climate Change: A Survey," ECARES Working Papers 2008_038, Université Libre de Bruxelles, Ecares. [Downloadable!]
  6. Paul Makdissi & Stéphane Mussard, 2006. "Analyzing the Impact of Indirect Tax Reforms on Rank Dependant Social Welfare Functions: A Positional Dominance Approach," Cahiers de recherche 06-02, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
    Other versions:
  7. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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