Ivica, Urban (2011): Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues.
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When there is a large number of pre-fiscal income equals in the sample, the redistributive effects based on the Gini index may be inappropriately estimated. Due to its roots in the Gini framework, the problem also appears in the application of the Duclos, Jalbert and Araar (2003) (DJA) decomposition of redistributive effects into vertical, classical horizontal inequity and reranking effects. This paper explains how the DJA implementation procedure must be adapted to produce correct estimates of different effects. The procedure is first illustrated on the 12-units hypothetical population and then applied to real data for the Croatian fiscal subsystem comprised of social security contributions, personal income tax, public pensions and cash social benefits.
|Item Type:||MPRA Paper|
|Original Title:||Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues|
|Keywords:||redistributive effect; vertical equity; horizontal equity; 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:||17. Jan 2011 14:29|
|Last Modified:||11. Feb 2013 19:59|
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Available Versions of this Item
Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 17. Jan 2011 14:29)
Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 04. Jul 2011 11:21)
- Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 16. Aug 2011 18:44)
- Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 04. Jul 2011 11:21)