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Decomposition of s-Concentration Curves

  • Paul Makdissi


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

  • Stéphane Mussard


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

For any given order of stochastic dominance, standard concentration curves are decomposed into contribution curves corresponding to within-group inequalities, between-group inequalities, and transvariational inequalities. We prove, for all orders, that contribution curve dominance implies systematically welfare-improving tax reforms and conversely. Accordingly, we point out some undesirable fiscal reforms since a welfare expansion may be costly in terms of particular inequalities.

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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 06-21.

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Length: 18 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:shr:wpaper:06-21
Contact details of provider: Postal: Sherbrooke, Québec, J1K 2R1
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  17. Paul Makdissi & Stéphane Mussard, 2008. "Analyzing the impact of indirect tax reforms on rank-dependent social welfare functions: a positional dominance approach," Social Choice and Welfare, Springer, vol. 30(3), pages 385-399, April.
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