Decomposition of s‐concentration curves

Paul Makdissi () and Stéphane Mussard

Canadian Journal of Economics/Revue canadienne d'économique, 2008, vol. 41, issue 4, 1312-1328

Abstract: Abstract. For any given order of inverse stochastic dominance, standard concentration curves are decomposed into three components, called contribution curves. Those components correspond to within‐group inequalities, between‐group inequalities, and transvariational inequalities. We prove, for all orders, that contribution curve dominance implies systematically welfare‐improving tax reforms and conversely. Accordingly, as welfare expansions may be costly in terms of particular inequalities, we propose targeted fiscal reforms. Les courbes de concentration sont décomposées, quel que soit l'ordre de dominance stochastique inverse considéré, en trois composantes appelées courbes de contribution. Ces composantes correspondent aux inégalités intragroupes, intergroupes et aux inégalités de transvariation. Nous montrons, pour chaque ordre, que la dominance des courbes de contribution implique systématiquement l'existence de réformes fiscales augmentant le bien‐être, et inversement. Des réformes fiscales ciblées sont proposées dans la mesure où les augmentations de bien‐être peuvent être coûteuses en termes d'inégalités particulières.

Date: 2008
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https://doi.org/10.1111/j.1540-5982.2008.00505.x

Related works:
Journal Article: Decomposition of s-concentration curves (2008)
Working Paper: Decomposition of s-concentration curves (2008)
Working Paper: Decomposition of s-Concentration Curves (2006)
Working Paper: Decomposition of s - Concentration Curves (2006)
Working Paper: Decomposition of s-Concentration Curves (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:41:y:2008:i:4:p:1312-1328

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