Measurement of effective tax progression
The paper first considers two properties of measures of effective progression, proportional yield neutrality and linear decomposability. It is shown that decomposability implies yield neutrality but not the converse. The concept of sensitivity of a measure to progression in various ranges of the income spectrum is then defined. This concept, when applied to the commonly used group of Lorenz curve based measure, shows them all to be sensitive only in the middle income range. A new class of measures is, therefore, introduced so that particular measures with any desired pattern of sensitivity can be constructed. The paper concludes with empirical illustrations for Canada and the U.S. The importance of separating measures of effective progression from measures of income redistribution is stressed, by showing that progressive taxes do not unambigously reduce the inequality of post tax incomes.
|Date of creation:||1986|
|Date of revision:|
|Contact details of provider:|| Postal: D-78457 Konstanz|
Phone: +49 7531 88 2314
Web page: http://www.wiwi.uni-konstanz.de/
More information through EDIRC
References listed on IDEAS
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.:
- Lambert, Peter J, 1985. "On the Redistributive Effect of Taxes and Benefits," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(1), pages 39-54, February.
- Davies, David G, 1980. "Measurement of Tax Progressivity: Comment," American Economic Review, American Economic Association, vol. 70(1), pages 204-07, March.
- Steven M. Rock, 1983. "Measurement of Tax Progressivity: Application," Public Finance Review, , vol. 11(1), pages 109-120, January.
- Lambert, Peter J, 1984. "Non-equiproportionate Income Growth, Inequality, and the Income Tax," Public Finance = Finances publiques, , vol. 39(1), pages 104-18.
- Charles Blackorby & David Donaldson, 1984. "Ethical Social Index Numbers and the Measurement of Effective Tax-Benefit Progressivity," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 683-94, November.
- Hemming, R. & Keen, M. J., 1983. "Single-crossing conditions in comparisons of tax progressivity," Journal of Public Economics, Elsevier, vol. 20(3), pages 373-380, April.
- Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
- Kakwani, Nanak C, 1977. "Applications of Lorenz Curves in Economic Analysis," Econometrica, Econometric Society, vol. 45(3), pages 719-27, April.
- Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, May.
- C. P. Khetan & S. N. Poddar, 1976. "Measurement of Income Tax Progression in a Growing Economy: The Canadian Experience," Canadian Journal of Economics, Canadian Economics Association, vol. 9(4), pages 613-29, November.
- John P. Formby & David Sykes, 1984. "State Income Tax Progressivity," Public Finance Review, , vol. 12(2), pages 153-165, April.
- Suits, Daniel B, 1980. "Measurement of Tax Progressivity: Reply," American Economic Review, American Economic Association, vol. 70(1), pages 211, March.
- Edward C. Kienzle, 1982. "Post-Fisc Distributions of Income: Measuring Progressivity With Application To the United States," Public Finance Review, , vol. 10(3), pages 355-368, July.
- Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
- Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-52, September.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
When requesting a correction, please mention this item's handle: RePEc:zbw:kondp1:224. 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: (ZBW - German National Library of Economics)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.