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Socially-Improving Tax Reforms

  • Paul Makdissi


    (Département d'économique, Université de Sherbrooke)

  • Jean-Yves Duclos


    (Pavillon De sève, Université Laval, Sainte-Foy, Québec, Canada)

This paper proposes graphical methods to determine whether commodity-tax changes are socially improving , in the sense of improving social welfare or decreasing poverty for large classes of social welfare and poverty indices. It also derives estimators of critical poverty lines and economic efficiency ratios which can be used to characterize socially-improving tax reforms. The statistical properties of the various estimators are derived in order to make the method implementable using survey data. The methodology is illustrated using Mexican data.

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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 02-01.

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Length: 48 pages
Date of creation: 2002
Date of revision: 2004
Handle: RePEc:shr:wpaper:02-01
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  18. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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  28. Douglas Lundin, 2001. "Welfare-Improving Carbon Dioxide Tax Reform Taking Externality and Location into Account," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(5), pages 815-835, November.
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