Measuring the Redistributive Impact of Taxes and Transfers in the Presence of Reranking

Ali Enami

No 59, Commitment to Equity (CEQ) Working Paper Series from Tulane University, Department of Economics

Abstract: This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income changes as a result of fiscal redistribution. Through various examples, this paper shows how reranking--a common feature in all actual fiscal systems--reduces the predictive power of simple measures of progressivity in assessing the actual effect of taxes and transfers on inequality.

Keywords: Marginal contribution; vertical equity; reranking. (search for similar items in EconPapers)
JEL-codes: A23 D31 H22 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2016-11
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Commitment to Equity, November 2016, pages 1-16

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http://repec.tulane.edu/RePEc/ceq/ceq59.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tul:ceqwps:59

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