Are equalization payments making Canadians better off? A two-dimensional dominance answer
This paper provides a normative appraisal of the Canadian equalization transfers system. For that sake, the two-dimensional dominance criteria introduced by Atkinson and Bourguignon(RES, 1982) are used to compare the distributions of private and public good before and after equalization payments. As the distribution before equalization is not observable, one simulates it on the basis of various scenarios which specify both its financing by the federal government and its utilization by provincial governments. The results show that Canadian equalization payments never improve social welfare for all utilitarian social planners who believe that household convert public and private goods into well-being by a utility function belonging to the classes that corresponds to the Atkinson and Bourguignon criteria. A further parametric restriction on the class of utility functions however enables to get more precise results.
(This abstract was borrowed from another version of this item.)
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 10 (2012)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://springerlink.metapress.com/link.asp?id=111137|
References listed on IDEAS
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.:
- Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-41, May.
- Robin Boadway, 2003.
"The Theory and Practice of Equalization,"
1016, Queen's University, Department of Economics.
- François Bourguignon & Satya Chakravarty, 2003.
"The Measurement of Multidimensional Poverty,"
Journal of Economic Inequality,
Springer, vol. 1(1), pages 25-49, April.
- M. Fleurbaey & A. Trannoy, 2000.
"The Impossibility of a Paretian Egalitarian,"
THEMA Working Papers
2000-26, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Nicolas Gravel & Abhiroop Mukhopadhyay, 2010.
"Is India better off today than 15 years ago? A robust multidimensional answer,"
Journal of Economic Inequality,
Springer, vol. 8(2), pages 173-195, June.
- Nicolas Gravel, 2007. "Is India Better off Today Than 15 Years Ago? A Robust Multidimensional Answer," Working Papers id:1056, eSocialSciences.
- Nicolas Gravel & Abhiroop Mukhopadhyay, 2007. "Is India Better off Today than 15 Years ago? A Robust Multidimensional Answer," IDEP Working Papers 0704, Institut d'economie publique (IDEP), Marseille, France, revised 18 May 2007.
- Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001.
"Robust Multidimensional Poverty Comparisons,"
Cahiers de recherche
0115, Université Laval - Département d'économique.
- Kathleen M. Day & Stanley L. Winer, 2001. "Policy-induced Migration in Canada: An Empirical Study," Carleton Economic Papers 01-08, Carleton University, Department of Economics.
- Nicolas Gravel & Patrick Moyes, 2006.
"Ethically Robust Comparisons of Distributions of Two Individual Attributes,"
IDEP Working Papers
0605, Institut d'economie publique (IDEP), Marseille, France, revised Aug 2006.
- Patrick Moyes & Nicolas Gravel, 2010. "Ethically robust comparisons of distributions of two individual attributes," Post-Print hal-00796074, HAL.
- Patrick Moyes & Nicolas Gravel, 2007. "Ethically robust comprisons of distributions of two individual attributes," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00389601, HAL.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
- Davidson, R. & Duclos, J.-Y., 1998.
"Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality,"
98a14, Universite Aix-Marseille III.
- Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
- Davidson, Russell & Duclos, Jean-Yves, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Cahiers de recherche 9805, Université Laval - Département d'économique.
- Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-44, February.
- Nicolas Gravel & Michel Poitevin, 2004.
"The Progressivity of Equalization Payments in Federations,"
IDEP Working Papers
0408, Institut d'economie publique (IDEP), Marseille, France, revised Jul 2004.
- Gravel, Nicolas & Poitevin, Michel, 2006. "The progressivity of equalization payments in federations," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1725-1743, September.
- GRAVEL, Nicolas & POITEVIN, Michel, 2004. "The Progressivity of Equalization Payments in Federations," Cahiers de recherche 14-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- GRAVEL, Nicolas & POITEVIN, Michel, 2004. "The Progressivity of Equalization Payments in Federations," Cahiers de recherche 2004-12, Universite de Montreal, Departement de sciences economiques.
- Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics.
- Robin Boadway & Katherine Cuff & Maurice Marchand, 2003.
"Equalization and the Decentralization of Revenue-Raising in a Federation,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 5(2), pages 201-228, 04.
- BOADWAY, Robin & CUFF, Katherine & MARCHAND, Maurice, . "Equalization and the decentralization of revenue-raising in a federation," CORE Discussion Papers RP 1610, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- R. Boadway & K. Cuff & M. Marchand, 2001. "Equalization and the Decentralization of Revenue-Raising in a Federation," Department of Economics Working Papers 2001-04, McMaster University.
- Robin W. Boadway & Frank R. Flatters, 1982. "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 613-33, November.
- A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 183-201.
- William G. Watson, 1986. "An Estimate of the Welfare Gain from Fiscal Equalization," Canadian Journal of Economics, Canadian Economics Association, vol. 19(2), pages 298-308, May.
- Kaur, Amarjot & Prakasa Rao, B.L.S. & Singh, Harshinder, 1994. "Testing for Second-Order Stochastic Dominance of Two Distributions," Econometric Theory, Cambridge University Press, vol. 10(05), pages 849-866, December.
- Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
- Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, vol. 54(4), pages 991-97, July.
- Valentino Dardanoni & Antonio Forcina, 1999. "Inference for Lorenz curve orderings," Econometrics Journal, Royal Economic Society, vol. 2(1), pages 49-75.
When requesting a correction, please mention this item's handle: RePEc:kap:jecinq:v:10:y:2012:i:1:p:19-44. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.