A Note on Progressive Taxation and Inequality Equivalence

Claudio Zoli

A chapter in Inequality, Taxation and Intergenerational Transmission, 2018, vol. 26, pp 15-33 from Emerald Group Publishing Limited

Abstract: We investigate the relationship between the notion of progressive taxation and inequality reduction under a general version of the concept of inequality equivalence. We consider a two-parameter formalization of the concept of inequality equivalence that both includes, as special cases, the intermediate inequality equivalence and the path-independent/unit-consistent inequality equivalence. Both criteria could range from relative to absolute inequality views as the parameters in the formulation change. For the path-independent/unit-consistent inequality equivalence the condition of nondecreasing average tax rate is necessary and sufficient to guarantee the inequality-reducing effect of taxation for all the inequality views in between the relative and the absolute.

Keywords: Progressive taxation; inequality equivalence; intermediate measures; unit consistency; path-independent inequality; Lorenz dominance; D31; D63; H23 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 9-258520180000026003
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
Working Paper: A note on progressive taxation and inequality equivalence (2017)
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:eme:reinzz:s1049-258520180000026003

DOI: 10.1108/S1049-258520180000026003

Access Statistics for this chapter

More chapters in Research on Economic Inequality from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().