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Horizontal and Vertical Redistribution and Micro-simulation

Author

Listed:
  • Luc Savard

    () (GREDI, Département d'économique, Université de Sherbrooke)

  • Stéphane Mussard

    () (GREDI, Université de Sherbrooke and Université de Perpignan)

Abstract

This paper proposes many indicators of vertical and horizontal redistribution throughout a generalized technique of Gini decomposition. Using the TD/BU micro-simulation models with externalities, we simulate income distributions and income source distributions for seven educational groups in Philippines in order to measure the inequality variations between two periods (pre and post policy simulation). We generalize the technique of multi-decomposition, that is, the combination of income source and subgroup decomposition to capture the different indicators of vertical and horizontal redistribution.

Suggested Citation

  • Luc Savard & Stéphane Mussard, 2005. "Horizontal and Vertical Redistribution and Micro-simulation," Cahiers de recherche 05-03, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:05-03
    as

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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0507.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
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    3. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
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    More about this item

    Keywords

    Income Inequalities; Micro-simulation; Generalized Multi-decomposition.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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