Base independence in the analysis of tax policy effects: with an application to Norway 1992–2004

Peter J. Lambert () and Thor Thoresen
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Peter J. Lambert: University of Oregon Economics Department

University of Oregon Economics Department Working Papers from University of Oregon Economics Department

Abstract: The analysis contrasts results of two recently expounded micro-level data approaches to derive robust intertemporal characterizations of redistributional effects of income tax schedules; the fixed-income procedure of Kasten, Sammartino and Toder (1994) and the transplant-and-compare method of Dardanoni and Lambert (2002). Our study is normative in that the Blackorby and Donaldson (1984) index of tax progressivity is employed. This enables contributions from vertical redistribution and horizontal inequity also to be assessed, using for the latter one classical measure and one no reranking measure. When the competing methodologies are applied to Norwegian data for 1992–2004, their respective strengths and weaknesses are revealed. The transplant-and-compare procedure is found to have a number of advantages.

Keywords: income tax; tax progressivity; horizontal inequity (search for similar items in EconPapers)
JEL-codes: D31 D63 H24 (search for similar items in EconPapers)
Pages: 31
Date: 2005-09-01, Revised 2005-10-27
New Economics Papers: this item is included in nep-pbe
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Related works:
Journal Article: Base independence in the analysis of tax policy effects: with an application to Norway 1992–2004 (2009)
Working Paper: Base independence in the analysis of tax policy effects: with an application to Norway 1992-2004 (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ore:uoecwp:2005-13

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