Kakwani decomposition of redistributive effect: Origins, critics and upgrades

Ivica Urban

No 148, 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. This paper describes how the decomposition has emerged, how its proponents managed to expand and upgrade it, and how extensively it has been employed in empirical research. However, the arguments are presented that the decomposition features certain methodological problems and it is therefore called for its reinterpretation.

Keywords: income redistribution; Kakwani decomposition; reranking; horizontal inequity; progressivity (search for similar items in EconPapers)
JEL-codes: D63 H22 H23 (search for similar items in EconPapers)
Pages: 35 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 (28)

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