Ivica, Urban (2011): Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues.
Download (461kB) | Preview
The 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 extensively employed in empirical research, possibly due to certain difficulties emerging in its implementation. This paper addresses some of these problems and offers advice on how to solve them. Unfolding the estimation and calculation procedures it helps practitioners to properly apply the model. The procedures are first illustrated on small hypothetical population and then employed on the real data scenario for Croatian fiscal system. Connections with Kakwani’s (1984) decomposition and the issue of vertical effect as a measure of potential redistributive effect are also thoroughly discussed.
|Item Type:||MPRA Paper|
|Original Title:||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:||16. Aug 2011 18:44|
|Last Modified:||02. Mar 2013 10:39|
Araar, A. and Duclos, J.-Y. (2003). ‘An Atkinson-Gini Family of Social Evaluation Functions’, Economics Bulletin, Vol. 3 (19), 1-16.
Araar, A. and Duclos, J.-Y. (2006). ‘An Atkinson-Gini Family of Social Evaluation Functions: Theory and Illustration Using Data from the Luxembourg Income Study’, Public Finance, Vol. 54 (3), 191-209.
Aronson, J. R., Johnson, P. and Lambert, P. J. (1994). ‘Redistributive effect and unequal income tax treatment’, The Economic Journal, Vol. 104, pp. 262-270.
Atkinson, A. B. (1970). ‘On the Measurement of Inequality’, Journal of Economic Theory, Vol. 2, pp. 244–263.
Atkinson, A. B. (1980). ‘Horizontal Equity and the Distribution of the Tax Burden’, in Aaron, H. J. and Boskins, M. J. (eds), The Economics of Taxation, Washington D.C., Brookings, pp. 3-18.
Bilger, M. (2008). ‘Progressivity, horizontal inequality and reranking caused by health system financing: A decomposition analysis for Switzerland’, Journal of Health Economics, Vol. 27, pp. 1582–1593.
Dardanoni, V. and Lambert, P. J. (2001). ‘Horizontal Inequity Comparisons’, Social Choice and Welfare, Vol. 18, pp. 799–816.
Donaldson, D. and Weymark, J. (1980). ‘A Single-Parameter Generalization of Gini indices of Inequality’, Journal of Economic Theory, Vol 22, pp. 67–86.
Duclos, J.-Y., Jalbert, V. and Araar, A. (2003). ‘Classical horizontal inequity and reranking: an integrated approach’, Research on Economic Inequality, Vol. 10, pp. 65–100.
Kakwani, N. C. (1984). ‘On the measurement of tax progressivity and redistributive effect of taxes with applications to horizontal and vertical equity’, Advances in Econometrics, Vol. 3, pp. 149-168.
Plotnick, R. (1981). ‘A Measure of Horizontal Equity’, The Review of Economics and Statistics, Vol. 63, pp. 283-288.
Yitzhaki, S. (1983). ‘On an Extension of the Gini Inequality Index’, International Economic Review, Vol. 24, pp. 617–628.
Yitzhaki, S. and Olkin, I. (1991). ‘Concentration curves and concentration indices’, Lecture Notes - Monograph Series 19, pp. 380-392.
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) [Currently Displayed]
- Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 04. Jul 2011 11:21)