A non-parametric decomposition of redistribution into vertical and horizontal components
We use non-parametric methods to propose horizontal inequity (HI) measures that satisfy certain normative and statistical properties. The HI measures tackle the problem of arbitrary definition of similar individuals and satisfy the horizontal transfer principle. HI is measured by any index consistent with the distance between the estimated and actual post-tax income Lorenz curves. This incorporates an ordinal view of HI. The total effect of a tax system can be decomposed into welfare gain due to income redistribution free of HI and welfare loss due to HI. Other indices in the literature can be seen as particular cases.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Phone: +34 913942604|
Web page: http://economicasyempresariales.ucm.es/
More information through EDIRC
|Order Information:|| Postal: Facultad de Ciencias Económicas y Empresariales. Campus de Somosaguas, 28223 - POZUELO DE ALARCÓN (MADRID)|
Web: https://economicasyempresariales.ucm.es/working-papers-ccee Email:
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.:
- DUCLOS, Jean-Yves, 1994.
"Progressivity, Redistribution and Equity, with Application to the British Tax and Benefit System,"
Cahiers de recherche
9403, Université Laval - Département d'économique.
- Duclos, Jean-Yves, 1993. "Progressivity, Redistribution, and Equity, with Application to the British Tax and Benefit System," Public Finance = Finances publiques, , vol. 48(3), pages 350-65.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
- Jenkins, Stephen P., 1988.
"Empirical measurement of horizontal inequity,"
Journal of Public Economics,
Elsevier, vol. 37(3), pages 305-329, December.
- Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May.
- Aronson, J Richard & Johnson, Paul & Lambert, Peter J, 1994. "Redistributive Effects and Unequal Income Tax Treatment," Economic Journal, Royal Economic Society, vol. 104(423), pages 262-70, March.
- Feldstein, Martin, 1976. "On the theory of tax reform," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 77-104.
- King, Mervyn A, 1983. "An Index of Inequality: With Applications to Horizontal Equity and Social Mobility," Econometrica, Econometric Society, vol. 51(1), pages 99-115, January.
When requesting a correction, please mention this item's handle: RePEc:ucm:doctra:01-07. 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: (Águeda González Abad)
If references are entirely missing, you can add them using this form.