Horizontal Equity and Progession when Equivalence Scales are not Constant
AbstractHousehold needs must be taken into account when designing an equitable income tax. If the equivalence scale is income dependent it is not transparent how to achieve equity. In this paper we explore the question of horizontal equity and the implications for progression (vertical equity), when the equivalence scale depends on income level. In particular an 'equal progression among equals' criterion is articulated and shown to be achievable along with horizontal equity under specified conditions.
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Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 02/02.
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Other versions of this item:
- Udo Ebert & Peter J. Lambert, 2004. "Horizontal Equity and Progression When Equivalence Scales Are Not Constant," Public Finance Review, , vol. 32(4), pages 426-440, July.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-04-15 (All new papers)
- NEP-LTV-2002-04-03 (Unemployment, Inequality & Poverty)
- NEP-PBE-2002-04-15 (Public Economics)
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.:
- Udo Ebert, 2000. "Equivalizing Incomes: A Normative Approach," International Tax and Public Finance, Springer, vol. 7(6), pages 619-640, December.
- Donaldson, D. & Pendakur, K., 1999. "Equivalent-Income Functions and Income-Dependent Equivalence Scales," Discussion Papers dp99-8, Department of Economics, Simon Fraser University.
- repec:fth:simfra:99-8 is not listed on IDEAS
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- Ebert, Udo & Lambert, Peter J, 1999. "Combined Income Taxes and Tax-Benefit Systems," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 397-404, December.
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- Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-44, May.
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- John Muellbauer & Justin van de Ven, 2004.
"Estimating Equivalence Scales for Tax and Benefits Systems,"
2004-W06, Economics Group, Nuffield College, University of Oxford.
- John Muellbauer & Justin Van de Ven, 2004. "Estimating Equivalence Scales for Tax and Benefits Systems," Economics Series Working Papers 2004-W06, University of Oxford, Department of Economics.
- Justin van de Ven & Nicolas Herault & Francisco Azpitarte, 2014. "Identifying Tax Implicit Equivalence Scales," Melbourne Institute Working Paper Series wp2014n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Bönke, Timm & Eichfelder, Sebastian, 2008. "Horizontale Gleichheit im Abgaben-Transfersystem: eine Analyse äquivalenter Einkommen von Arbeitnehmern in Deutschland," arqus Discussion Papers in Quantitative Tax Research 36, arqus - Arbeitskreis Quantitative Steuerlehre.
- Udo Ebert, 2011. "The redistribution of income when needs differ," Working Papers V-331-11, University of Oldenburg, Department of Economics, revised Feb 2011.
- Achille VERNIZZI & Maria Giovanna MONTI & Marek KOSNY, 2006. "An overall inequality reducing and horizontally equitable tax system with application to Polish data," Departmental Working Papers 2006-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Luis Ayala & Rosa Martínez & Jesús Ruiz Huerta, 2003. "Equivalence scales in tax and transfer policies," Investigaciones Economicas, Fundación SEPI, vol. 27(3), pages 593-614, September.
- repec:old:wpaper:331 is not listed on IDEAS
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