Bayesian estimation of social welfare and tax progressivity measures
Duangkamon Chotikapanich and
John Creedy
Empirical Economics, 2003, vol. 28, issue 1, 45-59
Abstract:
This paper examines Bayesian methods of examining posterior distributions of inequality, concentration, tax progressivity and social welfare measures. Use is made of an explicit income distribution assumption and two alternative assumptions regarding the distribution of pre-tax mean incomes within each income group. The methods are applied to a simulated distribution of individual incomes and tax payments. It is possible to identify a minimum acceptable number of income classes to be used. The results suggest support for the use of group means in practical applications, particularly where large sample sizes are available. Copyright Springer-Verlag Berlin Heidelberg 2003
Keywords: Key words: Posterior distributions; tax progressivity, inequality., (search for similar items in EconPapers)
Date: 2003
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Working Paper: Bayesian Estimation of Social Welfare and Tax Progressivity Measures (2000) 
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Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:28:y:2003:i:1:p:45-59
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DOI: 10.1007/s001810100118
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