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Horizontal and Vertical Redistribution and Micro-simulation

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Author Info
Luc Savard () (GREDI, Département d'économique, Université de Sherbrooke)
Stéphane Mussard () (GREDI, Université de Sherbrooke and Université de Perpignan)

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Abstract

This paper proposes many indicators of vertical and horizontal redistribution throughout a generalized technique of Gini decomposition. Using the TD/BU micro-simulation models with externalities, we simulate income distributions and income source distributions for seven educational groups in Philippines in order to measure the inequality variations between two periods (pre and post policy simulation). We generalize the technique of multi-decomposition, that is, the combination of income source and subgroup decomposition to capture the different indicators of vertical and horizontal redistribution.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0507.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 05-03.

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Length: 22 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:shr:wpaper:05-03

Contact details of provider:
Postal: Sherbrooke, Qu�bec, J1K 2R1
Phone: (819) 821-7233
Fax: (819) 821-6930
Email:
Web page: http://www.usherbrooke.ca/adm/faculte/departements/economique/recherche/cahier_rech.html
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For technical questions regarding this item, or to correct its listing, contact: (Luc Savard).

Related research
Keywords: Income Inequalities Micro-simulation Generalized Multi-decomposition.

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  3. Dagum, Camilo, 1987. "Measuring the Economic Affluence between Populations of Income Receivers," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 5-12, January.
  4. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-87, January. [Downloadable!] (restricted)
  5. Fortin, Bernard & Marceau, Nicolas & Savard, Luc, 1997. "Taxation, wage controls and the informal sector," Journal of Public Economics, Elsevier, vol. 66(2), pages 293-312, November. [Downloadable!] (restricted)
  6. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April. [Downloadable!] (restricted)
  7. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, Blackwell Publishing, vol. 37(3), pages 313-29, September.
  8. Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Blackwell Publishing, vol. 47(3), pages 521-31, April. [Downloadable!] (restricted)
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    Other versions:
  10. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-55, June. [Downloadable!] (restricted)
  11. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
    Other versions:
  12. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE. [Downloadable!]
  13. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-31.
  14. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December. [Downloadable!] (restricted)
  15. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February. [Downloadable!] (restricted)
  16. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank. [Downloadable!]
  17. Agenor, Pierre-Richard & Izquierdo, Alejandro & Fofack, Hippolyte, 2003. "The integrated macroeconomic model for poverty analysis : a quantitative macroeconomic framework for the analysis of poverty reduction strategies," Policy Research Working Paper Series 3092, The World Bank. [Downloadable!]
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  19. François Bourguignon & Amedeo Spadaro, 2005. "Microsimulation as a tool for evaluating redistribution policies," PSE Working Papers 2005-02, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  20. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique. [Downloadable!]
    Other versions:
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