Ivica, Urban (2011): The Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues.
Download (987kB) | Preview
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|
Araar, Abdelkrim, and Jean-Yves Duclos. 2003. An Atkinson-Gini Family of Social Evaluation Functions. Economics Bulletin 3 (19): 1–16.
Araar, Abdelkrim, and Jean-Yves Duclos. 2006. An Atkinson-Gini Family of Social Evaluation Functions: Theory and Illustration Using Data from the Luxembourg Income Study. Public Finance 54 (3): 191–209.
Aronson, J. Richard, Paul Johnson, and Peter J. Lambert. 1994. Redistributive effect and unequal income tax treatment. The Economic Journal 104: 262–270.
Atkinson, Anthony B. 1970. On the Measurement of Inequality. Journal of Economic Theory 2: 244–263.
Atkinson, Anthony B. 1980. Horizontal Equity and the Distribution of the Tax Burden. In The Economics of Taxation, Henry J. Aaron, and Michael J. Boskins, eds., 3–18. Washington D.C.: Brookings Institution.
Bilger, Marcel. 2008. Progressivity, horizontal inequality and reranking caused by health system financing: A decomposition analysis for Switzerland. Journal of Health Economics 27: 1582–1593.
Dardanoni, Valentino, and Peter J. Lambert. 2001. Horizontal Inequity Comparisons. Social Choice and Welfare 18: 799–816.
Donaldson, David, and John A. Weymark. 1980. A Single-Parameter Generalization of Gini indices of Inequality. Journal of Economic Theory 22: 67–86.
Duclos, Jean-Yves, Abdelkrim Araar, and Carl Fortin. 2010. DAD: A software for Distributive Analysis / Analyse Distributive. MIMAP programme, International Development Research Centre, Government of Canada, and CIRPÉE, Université Laval (version: DAD 4.6 of October 2010).
Duclos, Jean-Yves, Vincent Jalbert, and Abdelkrim Araar. 2003. Classical horizontal inequity and reranking: an integrated approach. Research on Economic Inequality 10: 65–100.
Duclos, Jean-Yves, and Peter J. Lambert. 2000. A Normative and Statistical Approach to Measuring Classical Horizontal Inequity. Canadian Journal of Economics 33: 87–113.
Ebert, Udo, 1997. Social Welfare When Needs Differ: An Axiomatic Approach. Economica 64: 233–44.
Ebert, Udo. 1999. Using equivalent income of equivalent adults to rank income distributions. Social Choice and Welfare 16: 233–258.
Fan, Jianqing, and Gijbels, Irène. 1996. Local polynomial modelling and its applications. London: Chapman and Hall. Faunt, Lindsay M., and Michael L. Johnson. 1992. Analysis of discrete, time-sampled data using Fourier series method. Methods in Enzymology 210: 340–56.
Härdle, Wolfgang. 1990. Applied Nonparametric Regression. Cambridge University Press.
Kakwani, Nanak C. 1984. On the measurement of tax progressivity and redistributive effect of taxes with applications to horizontal and vertical equity. Advances in Econometrics 3: 149–168.
Keele, Luke. 2008. Semiparametric Regression for the Social Sciences. London: Wiley & Sons.
Plotnick, Robert. 1981. A Measure of Horizontal Equity. The Review of Economics and Statistics 63: 283–288.
Wand, Matt P. and Chris M. Jones. 1995. Kernel Smoothing. London: Chapman and Hall.
Yitzhaki, Shlomo. 1983. On an Extension of the Gini Inequality Index. International Economic Review 24: 617–628.
Yitzhaki, Shlomo, and Ingram Olkin. 1991. Concentration curves and concentration indices. Lecture Notes - Monograph Series 19: 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)
- The Duclos-Jalbert-Araar decomposition of redistributive effect: implementation issues. (deposited 05. May 2012 14:49) [Currently Displayed]
- 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)