The Equal Sacrifice Principle Revisited
What does an equal sacrifice tax look like in the case of a rank-dependent social welfare function? One's tax liability evidently becomes a function of one's income and one's position in the distribution in such a case, but not much else appears to be known. (Menahem Yaari touched upon the issue in his paper "A controversial proposal concerning inequality measurement", Journal of Economic Theory 1988, but focused only on a poll tax). In this paper, we determine the properties of the equal sacrifice tax for a wide class of rank-dependent social welfare functions, and integrate the theory with that already available for the class of utilitarian social welfare functions. In an additional step, we analyze the equal sacrifice tax for a class of mixed utilitarian and rank-dependent social welfare functions, and finally we review what this synthesis has achieved.
|Date of creation:||01 Jun 2006|
|Date of revision:||01 Jun 2006|
|Contact details of provider:|| Postal: 1285 University of Oregon, 435 PLC, Eugene, OR 97403-1285|
Phone: (541) 346-8845
Fax: (541) 346-1243
Web page: http://economics.uoregon.edu/
More information through EDIRC
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.:
- Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
- Mitra, Tapan & Ok, Efe A, 1996.
"Personal Income Taxation and the Principle of Equal Sacrifice Revisited,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 925-948, November.
- Mitra, T. & Ok, E.A., 1994. "Personal Income Taxation and the Principle of Equal Sacrifice Revisited," Papers 94-29, Cornell - Department of Economics.
- Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
- Young, H Peyton, 1990. "Progressive Taxation and Equal Sacrifice," American Economic Review, American Economic Association, vol. 80(1), pages 253-266, March.
- Berliant, M. & Gouveia, M., 1990.
"Equal Sacrifice And Incentive Compatible Income Taxation,"
RCER Working Papers
219, University of Rochester - Center for Economic Research (RCER).
- Berliant, Marcus & Gouveia, Miguel, 1993. "Equal sacrifice and incentive compatible income taxation," Journal of Public Economics, Elsevier, vol. 51(2), pages 219-240, June.
- Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
- Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
- D'Antoni, Massimo, 1999. "Piecewise linear tax functions, progressivity, and the principle of equal sacrifice," Economics Letters, Elsevier, vol. 65(2), pages 191-197, November.
- Berrebi, Z. M. & Silber, Jacques, 1981. "Weighting income ranks and levels : A Multiple-Parameter Generalization For Absolute and Relative Inequality Indices," Economics Letters, Elsevier, vol. 7(4), pages 391-397.
- Moyes, Patrick, 2003. "Redistributive effects of minimal equal sacrifice taxation," Journal of Economic Theory, Elsevier, vol. 108(1), pages 111-140, January.
- WEYMARK, John A., "undated".
"Generalized Gini inequality indices,"
CORE Discussion Papers RP
453, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Mehran, Farhad, 1976. "Linear Measures of Income Inequality," Econometrica, Econometric Society, vol. 44(4), pages 805-809, July.
- Alan Harrison, 1981. "Earnings by Size: A Tale of Two Distributions," Review of Economic Studies, Oxford University Press, vol. 48(4), pages 621-631.
- DONALDSON, David & WEYMARK, John A., "undated".
"Ethically flexible Gini indices for income distributions in the continuum,"
CORE Discussion Papers RP
520, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Donaldson, David & Weymark, John A., 1983. "Ethically flexible gini indices for income distributions in the continuum," Journal of Economic Theory, Elsevier, vol. 29(2), pages 353-358, April.
- Yaari, Menahem E., 1988. "A controversial proposal concerning inequality measurement," Journal of Economic Theory, Elsevier, vol. 44(2), pages 381-397, April.
- Mitra, T. & Ok, E.A., 1995.
"On the Equitability of Progressive Taxation,"
95-25, C.V. Starr Center for Applied Economics, New York University.
- Young, H. P., 1987. "Progressive taxation and the equal sacrifice principle," Journal of Public Economics, Elsevier, vol. 32(2), pages 203-214, March.
- Ok, Efe A., 1995. "On the principle of equal sacrifice in income taxation," Journal of Public Economics, Elsevier, vol. 58(3), pages 453-467, November.
- Hutton, J P & Lambert, P J, 1980. "Evaluating Income Tax Revenue Elasticities," Economic Journal, Royal Economic Society, vol. 90(363), pages 901-906, December.
When requesting a correction, please mention this item's handle: RePEc:ore:uoecwp:2006-4. 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: (Bill Harbaugh)
If references are entirely missing, you can add them using this form.