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La composizione familiare e l�imposta sul reddito delle persone fisiche: un�analisi degli effetti redistributivi e alcune considerazioni sul benessere sociale

Author

Listed:
  • Maria Rosaria Marino

    () (Banca d'Italia)

  • Chiara Rapallini

    () (Universit� degli studi di Roma "Tor Vergata")

Abstract

The paper provides an evaluation of the redistribution effects stemming from the changes to the personal income tax introduced in the last decade. The analysis confirms that between 1989 and 2001 the net average tax rate increased for all taxpayers and, above all, for one-earner couples. The reason is twofold: a) the progressivity of the tax makes larger the burden on these households of changes in income brackets and tax rates; b) the absence of dependent relatives does not allow the compensation of higher taxes with increased tax credits. However, these higher taxes are associated with a distribution of the tax burden that favours low income households with a high number of components, thanks to changes in tax credits. Concerning welfare effects, the results of the analysis are controversial. The net income distribution in 2001 dominates in Lorenz sense that of 1989 if the entire population is considered, if one-earner or two-earner households are separately taken into account, if the population is decomposed on the basis of the number of components in the family. The generalised Lorenz curves show that all one-earner and two-earner households in the lowest part of the income distribution have benefited from the changes in Irpef. The sequential stochastic dominance allows verifying that social welfare has increased for all one-earner households but the singles and has diminished for two-earner households.

Suggested Citation

  • Maria Rosaria Marino & Chiara Rapallini, 2003. "La composizione familiare e l�imposta sul reddito delle persone fisiche: un�analisi degli effetti redistributivi e alcune considerazioni sul benessere sociale," Temi di discussione (Economic working papers) 477, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_477_03
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    Citations

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    Cited by:

    1. Francesca Gastaldi & Paolo Liberati & Chiara Rapallini, 2008. "A Decomposition of the Personal Income Tax Changes in Italy: 1995-2000," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(1), pages 87-114, March.
    2. repec:bdi:opques:qef_146_01 is not listed on IDEAS
    3. Palumbo, Giuliana, 2006. "Optimal duplication of effort in advocacy systems," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 112-128, May.
    4. Andrea Neri & Maria Teresa Monteduro, 2013. "The housing wealth of Italian households: a comparison of administrative and survey data," Questioni di Economia e Finanza (Occasional Papers) 146, Bank of Italy, Economic Research and International Relations Area.
    5. Daniela Sonedda & Gilberto Turati, 2005. "Winners and Losers in the Italian Welfare State: A Microsimulation Analysis of Income Redistribution Considering In-Kind Transfers," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 423-464, December.

    More about this item

    Keywords

    imposta sul reddito personale; famiglie; distribuzione del reddito; effetti redistributivi; effetti sul benessere; dominanza stocastica;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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