Redistribution, Horizontal Inequity, and Reranking

Ivica Urban and Peter J. Lambert
Additional contact information
Peter J. Lambert: University of Oregon, Eugene

Public Finance Review, 2008, vol. 36, issue 5, 563-587

Abstract: The decomposition of the Gini-based index of redistributive effect of an income tax into vertical, horizontal, and reranking contributions according to the model of Aronson, Johnson, and Lambert (AJL) is revisited. When close equals groups are used, rather than the exact equals groups on which the model is predicated, problems arise. A new measurement system is proposed, in which three distinct forms of reranking are disentangled and the vertical and horizontal contributions are redefined. Other approaches to measuring equity in tax systems are set in context. Findings are briefly applied to Croatian data, and recommendations for users of the AJL methodology are given.

Keywords: redistributive effect; vertical equity; horizontal inequity; reranking (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1091142107308295 (text/html)

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:sae:pubfin:v:36:y:2008:i:5:p:563-587

DOI: 10.1177/1091142107308295

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().