Redistributive effects in a dual income tax system

Arnaldur Kristjánsson ()

No 187, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: Equity issues of the dual income tax have been left aside in the field of economics. Since a dual income tax needs different modelling than a comprehensive one this paper offers firstly a quantitative framework to measure redistributive effects; it turns out that this involves both direct and indirect effects. The effects of horizontal inequity and re-ranking are also incorporated into the decomposition analysis. The approach is applicable using available income and tax statistics. Secondly, partial effects of changes in tax parameters are presented; they are channelled through the direct and indirect effects; and are not always straightforward.

Keywords: redistributive effect; progressivity; dual income tax. (search for similar items in EconPapers)
JEL-codes: D63 H23 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2010
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ecineq.org/milano/WP/ECINEQ2010-187.pdf (application/pdf)

Related works:
Journal Article: Redistributive Effects in a Dual Income Tax System (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2010-187

Access Statistics for this paper

More papers in Working Papers from ECINEQ, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Maria Ana Lugo ( this e-mail address is bad, please contact ).