Redistribution in a joint income-wealth perspective: a cross-country comparison

Francesco Figari (), Sarah Kuypers and Gerlinde Verbist

No EM3/18, EUROMOD Working Papers from EUROMOD at the Institute for Social and Economic Research

Abstract: Redistribution is usually understood in terms of income; as a way to rank individuals as well as to determine taxable capacity or benefit eligibility. Yet, it is increasingly argued that more prominence should be given to the joint distribution of income and wealth and interest into the taxation of wealth for redistributive purposes has largely increased. By including the HFCS data into the microsimulation model EUROMOD we add two novel aspects to the literature. First, we include the analysis of taxes on wealth and wealth transfers. Second, we evaluate redistributive effects of tax-benefit systems against the joint income-wealth distribution instead of income only. We show that expressing living standards in terms of both income and wealth results in considerable reranking of individuals, which in turn leads to a lower redistributive impact of tax-benefit systems than is traditionally considered.

Date: 2018-02-17
New Economics Papers: this item is included in nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published

Downloads: (external link)
https://www.iser.essex.ac.uk/wp-content/uploads/fi ... s/euromod/em3-18.pdf (application/pdf)

Related works:
Working Paper: Redistribution in a joint income-wealth perspective: a cross-country comparison (2018)
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:ese:emodwp:em3-18

Access Statistics for this paper

More papers in EUROMOD Working Papers from EUROMOD at the Institute for Social and Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Jonathan Nears ().