IDEAS home Printed from https://ideas.repec.org/p/shr/wpaper/10-01.html
   My bibliography  Save this paper

Rank-Dependent Measures of Bi-Polarization and Marginal Tax Reforms

Author

Listed:
  • Paul Makdissi

    (Department of Economics, University of Ottawa)

  • Stephane Mussard

    (Lameta-Cnrs Université de Montpellier I. Address: Lameta-Cnrs, Université Montpellier I, GREDI-Universite de Sherbrooke)

Abstract

In this paper, we investigate a dual class of bi-polarization indices, namely rank-dependent bi-polarization indices. We show that these indices may be characterized with the generalized positional transfer sensitivity property. We find necessary and sufficient conditions in order to identify bi-polarization-reducing marginal tax reforms. Precisely, we propose inverse positional dominance criteria based on the comparison of bi-polarization concentration curves. An illustration is presented using the Jordanian Household Expenditure and Income Survey 2002/2003.

Suggested Citation

  • Paul Makdissi & Stephane Mussard, 2010. "Rank-Dependent Measures of Bi-Polarization and Marginal Tax Reforms," Cahiers de recherche 10-01, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:10-01
    as

    Download full text from publisher

    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1001.pdf
    File Function: First version, 2010
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Berrebi, Z. M. & Silber, Jacques, 1989. "Deprivation, the Gini index of inequality and the flatness of an income distribution," Mathematical Social Sciences, Elsevier, vol. 18(3), pages 229-237, December.
    2. Wildasin, David E, 1984. "On Public Good Provision with Distortionary Taxation," Economic Inquiry, Western Economic Association International, vol. 22(2), pages 227-243, April.
    3. repec:ebl:ecbull:v:4:y:2007:i:36:p:1-6 is not listed on IDEAS
    4. Yaari, Menahem E, 1987. "The Dual Theory of Choice under Risk," Econometrica, Econometric Society, vol. 55(1), pages 95-115, January.
    5. Rolf Aaberge, 2009. "Ranking intersecting Lorenz curves," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 235-259, August.
    6. Silber, Jacques & Berrebi, Z. M., 1988. "Distance functions and the comparison of development levels," Economics Letters, Elsevier, vol. 27(2), pages 195-200.
    7. Michael C. Wolfson, 1997. "Divergent Inequalities: Theory And Empirical Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 401-421, December.
    8. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    9. Jacques SILBER & Meital Hanoka & Joseph Deutsch, 2007. "On the Link Between the Concepts of Kurtosis and Bipolarization," Economics Bulletin, AccessEcon, vol. 4(36), pages 1-6.
    10. Paul Makdissi & Stéphane Mussard, 2008. "Decomposition of s-concentration curves," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1312-1328, November.
    11. 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;The Society for Social Choice and Welfare, vol. 30(3), pages 385-399, April.
    12. You‐Qiang Wang & Kai‐Yuen Tsui, 2000. "Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363, July.
    13. Jean-Yves Duclos & Paul Makdissi & Quentin Wodon, 2008. "Socially Improving Tax Reforms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1505-1537, November.
    14. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
    15. Yaari, Menahem E., 1988. "A controversial proposal concerning inequality measurement," Journal of Economic Theory, Elsevier, vol. 44(2), pages 381-397, April.
    16. Yitzhaki, Shlomo & Slemrod, Joel, 1991. "Welfare Dominance: An Application to Commodity Taxation," American Economic Review, American Economic Association, vol. 81(3), pages 480-496, June.
    17. repec:bla:jpbect:v:2:y:2000:i:3:p:349-63 is not listed on IDEAS
    18. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-719, September.
    19. repec:bla:revinw:v:43:y:1997:i:4:p:401-21 is not listed on IDEAS
    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. Mickael Beaud & Thierry Blayac & Patrice Bougette & Soufiane Khoudmi & Philippe Mahenc & Stéphane Mussard, 2013. "Estimation du coût d'opportunité des fonds publics pour l'économie française," Studies and Syntheses 14-01, LAMETA, Universtiy of Montpellier, revised Oct 2014.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Makdissi & Stéphane Mussard, 2008. "Decomposition of s-concentration curves," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1312-1328, November.
    2. Mario Fortin & Andre Leclerc & Jean-Baptiste Nesmy, 2006. "L’impact des opérations transactionnelles sur la croissance de la productivité dans le secteur bancaire," Cahiers de recherche 06-01, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    3. 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;The Society for Social Choice and Welfare, vol. 30(3), pages 385-399, April.
    4. MAKDISSI Paul & MUSSARD Stéphane, 2006. "Between-Group Transfers and Poverty-Reducing Tax Reforms," IRISS Working Paper Series 2006-10, IRISS at CEPS/INSTEAD.
    5. Jean-Yves Duclos & Paul Makdissi & Quentin Wodon, 2008. "Socially Improving Tax Reforms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1505-1537, November.
    6. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
    7. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2009. "Pro-Poor Tax reforms, with an Application to Mexico," Working Papers 0907E, University of Ottawa, Department of Economics.
    8. Mariateresa Ciommi & Chiara Gigliarano & Francesco Maria Chelli, 2024. "Measuring income polarization using Bonferroni and De Vergottini inequality indices: evidences from European countries," METRON, Springer;Sapienza Università di Roma, vol. 82(3), pages 245-267, December.
    9. Satya Chakravarty & Bhargav Maharaj, 2012. "Ethnic polarization orderings and indices," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(1), pages 99-123, May.
    10. Rodolfo Hoffmann & Ana Lucia Kassouf, 2025. "Measuring and Mismeasuring Income Polarization," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 177(2), pages 787-807, March.
    11. Ma Casilda Lasso de la Vega & Ana Urrutia & Henar Díez, 2010. "Unit Consistency And Bipolarization Of Income Distributions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(1), pages 65-83, March.
    12. Vincenzo Prete & Alessandro Sommacal & Claudio Zoli, 2016. "Optimal Non-Welfarist Income Taxation for Inequality and Polarization Reduction," Working Papers 23/2016, University of Verona, Department of Economics.
    13. F. Clementi & A. L. Dabalen & V. Molini & F. Schettino, 2017. "When the Centre Cannot Hold: Patterns of Polarization in Nigeria," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 608-632, December.
    14. Rolf Aaberge & Magne Mogstad, 2009. "On the Measurement of Long-Term Income Inequality and Income Mobility," ICER Working Papers 09-2009, ICER - International Centre for Economic Research.
    15. Jean-Yves Duclos & Paul Makdissi & Abdelkrim Araar, 2014. "Pro-poor indirect tax reforms, with an application to Mexico," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 87-118, February.
    16. Wasiu Adekunle Are, 2012. "Poverty-Reducing Directions of Indirect Marginal Tax Reforms in Ireland," Working Papers 201230, School of Economics, University College Dublin.
    17. Rolf Aaberge, 2007. "Gini’s nuclear family," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(3), pages 305-322, December.
    18. Chiara Gigliarano & Daniel Nowak & Karl Mosler, 2019. "A Polarization Index for Overlapping Groups," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(4), pages 712-735, December.
    19. Saikou Amadou Diallo & Paul Makdissi, 2008. "Est-ce que les subsides d'électricité diminuent la pauvreté en Guinée ?," Working Papers 0811E, University of Ottawa, Department of Economics.
    20. Jacques SILBER & Meital Hanoka & Joseph Deutsch, 2007. "On the Link Between the Concepts of Kurtosis and Bipolarization," Economics Bulletin, AccessEcon, vol. 4(36), pages 1-6.

    More about this item

    Keywords

    Bi-polarization; Stochastic Dominance; Tax Reform;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

    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:shr:wpaper:10-01. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-François Rouillard (email available below). General contact details of provider: https://edirc.repec.org/data/deushca.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.