Decomposing Redistributive and Reranking Effects to Reveal Contributions of Taxes and Benefits
AbstractNew decompositions of redistributive effects are developed, revealing the relative contributions of different tax and benefit instruments. The methodology uses a “micro-approach” in the study of income inequality, where different indicators are first calculated for pairs of income units, and then aggregated to the population level. This approach is much more suitable for scrutinizing various income transitions emerging from fiscal activities than the usual apparatus of Lorenz and concentration curves. Emerging within this framework are also the concepts of fiscal deprivation, distance narrowing deprivation from reranking; their connections with widely known indices of redistributive, vertical and reranking effects are established. The methodology is applied in an analysis of the Croatian system of direct taxes and cash social benefits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series The wiiw Balkan Observatory Working Papers with number 085.
Date of creation: Jul 2010
Date of revision:
Publication status: Published as The wiiw Balkan Observatory Working Paper, Jully 2010
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
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.:
- Immervoll, Herwig & Levy, Horacio & Lietz, Christine & Mantovani, Daniela & O'Donoghue, Cathal & Sutherland, Holly & Verbist, Gerlinde, 2006.
"Household Incomes and Redistribution in the European Union: Quantifying the Equalising Properties of Taxes and Benefits,"
184, Institute for Advanced Studies.
- Immervoll, Herwig & Levy, Horacio & Lietz, Christine & Mantovani, D. & O'Donoghue, Cathal & Sutherland, Holly & Verbist, Gerlinde, 2005. "Household incomes and redistribution in the European Union: quantifying the equalising properties of taxes and benefits," EUROMOD Working Papers EM9/05, EUROMOD at the Institute for Social and Economic Research.
- Immervoll, Herwig & Levy, Horacio & Lietz, Christine & Mantovani, Daniela & O'Donoghue, Cathal & Sutherland, Holly & Verbist, Gerlinde, 2005. "Household Incomes and Redistribution in the European Union: Quantifying the Equalising Properties of Taxes and Benefits," IZA Discussion Papers 1824, Institute for the Study of Labor (IZA).
- Ivica Urban, 2008. "Income Redistribution in Croatia: The Role of Individual Taxes and Social Transfers," Financial Theory and Practice, Institute of Public Finance, vol. 32(3), pages 387-403.
- Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
- DUCLOS, Jean-Yves, 1994.
"Progressivity, Redistribution and Equity, with Application to the British Tax and Benefit System,"
Cahiers de recherche
9403, Université Laval - Département d'économique.
- Duclos, Jean-Yves, 1993. "Progressivity, Redistribution, and Equity, with Application to the British Tax and Benefit System," Public Finance = Finances publiques, , vol. 48(3), pages 350-65.
- Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May.
- Jenkins, Stephen, 1988. "Reranking and the Analysis of Income Redistribution," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(1), pages 65-76, February.
- Jean-Yves Duclos, 2000. "Gini Indices and the Redistribution of Income," International Tax and Public Finance, Springer, vol. 7(2), pages 141-162, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Customer service).
If references are entirely missing, you can add them using this form.