Indices of redistributive effect and reranking: reinterpretation

Ivica Urban

No 147, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: Kakwani decomposition of redistributive effect into vertical and reranking terms is one of the most widely used tools in measurement of income redistribution. However, Urban (2009) argues that the decomposition features some methodological problems and calls for its reinterpretation. This paper builds several different measurement models, constructs new indices of redistributive effect and reranking reinventing the existing ones, and establishes important propositions on the role of reranking in redistributive process. All that is done to prove that standard interpretation of Kakwani decomposition is misleading. New roles are suggested for the well-known indices of redistributive, vertical and reranking effect.

Keywords: Kakwani decomposition; redistributive; reranking and vertical effects. (search for similar items in EconPapers)
JEL-codes: D63 H22 H23 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2009
New Economics Papers: this item is included in nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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