Ivica, Urban (2011): The Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues.
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Models decomposing the redistributive effect of fiscal systems into vertical and horizontal effects are extensively used by practitioners. The Duclos, Jalbert, and Araar’s (2003) model, despite its advantages, has not yet been widely employed in empirical research, possibly due to a relatively challenging implementation procedure that involves the estimation of expected post-fiscal incomes. To override these difficulties the designers of the software DAD (Duclos, Araar, and Fortin 2010) have incorporated a module for implementation of the model. However, the application of this module on Croatian tax-benefit system data revealed certain inaccuracies in the results. Carefully unfolding the calculation and estimation procedures needed for implementation of the model, this paper instructs practitioners on how to correctly apply the model and helps DAD designers improve their module.
|Item Type:||MPRA Paper|
|Original Title:||The Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues|
|Keywords:||redistributive effect; vertical equity; horizontal inequity; pre-fiscal equals|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
|Depositing User:||Ivica Urban|
|Date Deposited:||05. May 2012 14:49|
|Last Modified:||21. Feb 2013 00:48|
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Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 17. Jan 2011 14:29)
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