Redistribution, horizontal inequity and reranking: how to measure them properly
Ivica Urban and
Peter J. Lambert ()
Additional contact information
Peter J. Lambert: University of Oregon Economics Department
University of Oregon Economics Department Working Papers from University of Oregon Economics Department
Abstract:
The decomposition of the redistributive effect of an income tax into vertical, horizontal and reranking contributions according to the model of Aronson, Johnson and Lambert (1994), henceforth AJL, is revisited. When close equals groups are used, rather than the exact equals groups upon which the model is predicated, problems arise. A new measurement system is proposed, in which three distinct forms of reranking are disentangled and the vertical and horizontal contributions are redefined. Other approaches to measuring equity in tax systems are set in context. Findings are applied to Croatian data, and recommendations for users of the AJL methodology are given.
Keywords: redistributive effect; vertical equity; horizontal inequity; reranking (search for similar items in EconPapers)
JEL-codes: H23 (search for similar items in EconPapers)
Pages: 24
Date: 2005-07-01
New Economics Papers: this item is included in nep-pbe and nep-pub
References: Add references at CitEc
Citations:
Downloads: (external link)
http://economics.uoregon.edu/papers/UO-2005-12_Lambert_Redistribution.pdf (application/pdf)
Related works:
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:ore:uoecwp:2005-12
Access Statistics for this paper
More papers in University of Oregon Economics Department Working Papers from University of Oregon Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Bill Harbaugh ().