On the meaning and measurement of redistribution in cross-country comparisons
AbstractEmpirical findings on the relationship between income inequality and redistribution from a cross-country perspective are not conclusive. One reason may be that observers have in mind different concepts of redistribution. A major factor is that comparator countries’ pre-fisc distributions typically differ markedly, and account is taken of this differently (if at all) by different measures of redistribution. The ambiguities can be resolved by applying the “transplant-and-compare” approach, rendering fiscal regimes into a common base by adjusting for differences in pre-fisc income inequality, and then measuring the “pure” effect of tax-and-transfer policies using this benchmark. We illustrate both what is possible, and what remains problematic, using this technique, by conducting an exploratory international comparison, based on microdata from the Luxembourg Income Study database in combination with more aggregated information from the OECD, for 15 countries.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 649.
Date of creation: Feb 2011
Date of revision:
Redistributive effect; Personal income tax; Cross-country comparison;
Find related papers by JEL classification:
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
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- On the meaning and measurement of redistribution in cross-country comparisons
by maximorossi in NEP-LTV blog on 2011-03-14 22:47:00
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