Horizontal equity, equal progression: an utilitarian approach

Luis José Imedio Olmedo (), Encarnación Macarena Parrado Gallardo and María Dolores Sarrión Gavilán
Additional contact information
Luis José Imedio Olmedo: Universidad de Málaga
Encarnación Macarena Parrado Gallardo: Universidad de Málaga
María Dolores Sarrión Gavilán: Universidad de Málaga

Hacienda Pública Española / Review of Public Economics, 2005, vol. 174, issue 3, 87-115

Abstract: We consider an heterogeneous population in which we make a partition into two groups that are homogeneous with respect to the characteristics, other than the income, with fiscal incidence. The differences between both groups are taken into account by means of a profile of utility functions and the fiscal system is constituted by two tax schedules, one for each group. In this context, taking as equal those tax payers with the same level of utility, we define a scale of equivalence and we give several definitions of the horizontal equity principle. We characterize the fiscal systems which satisfy it in terms of utility loss, it allows us the incorporation of the equal sacrifice principle to the analysis. Furthermore, we obtain the conditions under which the equal face the same degree of progression. Finally, we particularize our results to the case of isoelastic utility functions.

Keywords: equal sacrifice; isoelastic utility functions and equivalence scales; heterogeneous populations. (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ief.es/comun/Descarga.cshtml?ruta=~/do ... tas/hpe/174_Art5.pdf (application/pdf)

Related works:
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:hpe:journl:y:2005:v:174:i:3:p:87-115

Access Statistics for this article

More articles in Hacienda Pública Española / Review of Public Economics from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().