IDEAS home Printed from https://ideas.repec.org/p/mil/wpdepa/2006-28.html
   My bibliography  Save this paper

Una precisazione sulla scomposizione dell’indice di redistribuzione RE di Aronson-Johnson-Lambert e una proposta di estensione dell’indice di Plotnick

Author

Listed:
  • Achille VERNIZZI

    ()

Abstract

Aronson-Johnson-Lambert redistribution index RE can be correctly applied provided that after taxation incomes maintain the same pre-tax order in what it concerns (i) group average incomes and (ii) within group incomes. If this is not the case, R should be replaced by the transvariation index defined e. g. by Dagum (1997). Of course when R is different from the tranvariation index, in considering RE one neglects income rerankings between groups averages and within groups incomes. This note suggests how information on rerankings may be recovered, through a proper decomposition of Plotnick index. The decomposed Plotnick index might be a useful tool in choosing optimal interval bandwidth, controlling either for group-average reranking and within group reranking. Moreover minor suggestions are added which might be applied in analyzing taxation effects for incomes grouped according to socio-demographic or other criterions.

Suggested Citation

  • Achille VERNIZZI, 2006. "Una precisazione sulla scomposizione dell’indice di redistribuzione RE di Aronson-Johnson-Lambert e una proposta di estensione dell’indice di Plotnick," Departmental Working Papers 2006-28, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  • Handle: RePEc:mil:wpdepa:2006-28
    as

    Download full text from publisher

    File URL: http://wp.demm.unimi.it/files/wp/2006/DEMM-2006_028wp.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rutherford,Malcolm, 1996. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521574471, November.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Bart Nooteboom, 2004. "Governance and competence: how can they be combined?," Cambridge Journal of Economics, Oxford University Press, vol. 28(4), pages 505-525, July.
    4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters,in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
    5. Brian J. Loasby, 1989. "The Mind and Method of the Economist," Books, Edward Elgar Publishing, number 288, September.
    6. Kirman, Alan, 1989. "The Intrinsic Limits of Modern Economic Theory: The Emperor Has No Clothes," Economic Journal, Royal Economic Society, vol. 99(395), pages 126-139, Supplemen.
    7. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, pages 297-313.
    8. Antonelli, Cristiano, 2003. "The Economics of Governance: the Role of Localized Knowledge in the Interdependence Among Transaction, Coordination and Production," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200303, University of Turin.
    9. Fleetwood, Steve, 1996. "Order without Equilibrium: A Critical Realist Interpretation of Hayek's Notion of Spontaneous Order," Cambridge Journal of Economics, Oxford University Press, vol. 20(6), pages 729-747, November.
    10. Foss, Kirsten, 2001. "Organizing Technological Interdependencies: A Coordination Perspective on the Firm," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 151-178, March.
    11. Langlois, Richard N. & Robertson, Paul L., 1989. "Explaining Vertical Integration: Lessons from the American Automobile Industry," The Journal of Economic History, Cambridge University Press, vol. 49(02), pages 361-375, June.
    12. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    13. Riccardo Leoncini & Sandro Montresor & Giovanna Vertova, 2003. "Dynamic capabilities: evolving organisations in evolving (technological) systems," Working Papers (-2012) 0304, University of Bergamo, Department of Economics.
    14. Ulrich Witt, 2006. "Evolutionary Economics," Papers on Economics and Evolution 2006-05, Philipps University Marburg, Department of Geography.
    15. Belussi, Fiorenza & Arcangeli, Fabio, 1998. "A typology of networks: flexible and evolutionary firms," Research Policy, Elsevier, pages 415-428.
    16. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
    17. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    18. Ash Amin & Patrick Cohendet, 2000. "Organisational Learning and Governance Through Embedded Practices," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 4(1), pages 93-116, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Achille VERNIZZI, 2009. "Playing with the Hadamard product in decomposing Gini, concentration, redistribution and re-ranking indexes," Departmental Working Papers 2009-50, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Achille VERNIZZI & Simone PELLEGRINO, 2007. "On the Aronson-Johnson-Lambert decomposition of the redistributive effect," Departmental Working Papers 2007-13, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 26 Jun 2007.

    More about this item

    Keywords

    Horizontal and Vertical Equity; Gini index and concentration index decompositions; redistribution index; reranking indexes;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2006-28. 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: (DEMM Working Papers). General contact details of provider: http://edirc.repec.org/data/damilit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.