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Kakwani decomposition of redistributive effect: Origins, critics and upgrades

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  • Ivica Urban

    ()
    (Institute of Public Finance, Zagreb)

Abstract

Kakwani decomposition of redistributive effect into vertical and reranking terms is one of the most widely used tools in measurement of income redistribution. This paper describes how the decomposition has emerged, how its proponents managed to expand and upgrade it, and how extensively it has been employed in empirical research. However, the arguments are presented that the decomposition features certain methodological problems and it is therefore called for its reinterpretation.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-148.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 148.

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Length: 35 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2009-148

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Web page: http://www.ecineq.org
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Related research

Keywords: income redistribution; Kakwani decomposition; reranking; horizontal inequity; progressivity;

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References

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Citations

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Cited by:
  1. Nicolas Herault & Francisco Azpitarte, 2013. "Understanding Changes in Progressivity and Redistributive Effects: The Role of Tax-Transfer Policies and Labour Supply Decisions," Melbourne Institute Working Paper Series wp2013n33, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. Nora Lustig, 2011. "Commitment to Equity Assessment (CEQ) A Diagnostic Framework to Assess Governments' Fiscal Policies Handbook," Working Papers 1119, Tulane University, Department of Economics.
  3. Carlos Farinha Rodrigues & Isabel Andrade, 2013. "Robin Hood versus Piggy Bank: Income redistribution in Portugal 2006-10," Working Papers Department of Economics 2013/28, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  4. Ivica Urban, 2009. "Indices of redistributive effect and reranking: reinterpretation," Working Papers 147, ECINEQ, Society for the Study of Economic Inequality.
  5. Nora Lustig & Sean Higgins, 2012. "Commitment to Equity Assessment (CEQ): Estimating the Incidence of Social Spending, Subsidies and Taxes Handbook," Working Papers 1219, Tulane University, Department of Economics.

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