Inequality, welfare and the progressivity (?) of the UK tax/benefit system. Sam Hinds
|
|
- Clarissa Melton
- 5 years ago
- Views:
Transcription
1 Inequality, welfare and the progressivity (?) of the UK tax/benefit system. Sam Hinds
2 Utility possibility frontier (i) First we consider the utility possibility diagram discussed in the lecture under a range of scenarios. Throughout we assume total income is fixed and is to be divided in some way to yield utility to two agents, A and B. On each diagram I note the Nozick, Pareto, Bentham, Rawls and Egalitarian optima.
3 Utility possibility frontier (ii) Case (i) Utility is equal to income for both A and B
4 Utility possibility frontier (iii) Case (ii) Utility is proportional to income for both A and B, but each utility function is different
5 Utility possibility frontier (iv) Case (iii) Everyone has the same utility function but utility depends on other people s income Altruism: Envy:
6 Welfare axioms (i) Suppose social welfare is to be measured by mean (1 Gini): which of the welfare axioms (if any) is violated by this SWF? (1) Anonymity - If x is a permutation of x then W (x ) = W (x) -> fine (2) Population principle - W (x ) W (x) W (x,...,x ) W (x,...,x) -> fine, if we replicate the population exactly then both the mean income and Gini coefficient are unchanged (3) Transfer principle - If xi < xj then, for small δ, W(x1,...,xi +δ,...,xj δ,...,xn) W(x1,...,xn ) -> fine, the transfer does not change mean income but improves the Gini coefficient in both, preserving the ordering (4) Scale invariance - W (x ) W (x) W (λx ) W (λx) -> fine as long as λ is positive (cancels out in Gini formula and multiplied the mean)
7 Welfare axioms (ii) Suppose social welfare is to be measured by mean (1 Gini): which of the welfare axioms (if any) is violated by this SWF? 5. Monotonicity - Increase anyone's income and welfare increases -> fine (effect on mean income dominates) 6. Decomposability - Adding the same subgroup to each distribution leaves the ranking unchanged -> Not ok, the Gini coefficient is not decomposable which means that we can get a reversal in the welfare measure when adding the same subgroup (e.g. see Cowell, > we can add a group so that mean income remains the same but the impact on the Gini reverses the ranking)
8 The progressivity (?) of the UK tax/benefit system Government intervention, through taxes and benefits, alters the incomes of households available for consumption, investment etc The UK tax and benefits system aids redistribution efforts through progressivity of direct taxation for example, whereby those higher up the income distribution are taxed at a higher rate and as such contribute a larger proportion of their income to distributive efforts. However, other instruments such as VAT (value-added-tax) can hinder redistribution efforts as they are regressive, levied at a constant rate for the entire population (meaning they take a higher proportion of the income of poorer households).
9 The UK tax and benefit system Jones (2008) studies four tiers of the UK tax/benefit system: 1. Original income; 2. Gross income (net of cash benefits); 3. Disposable income (also net of direct taxes); and 4. Post tax income (also net of indirect taxes).
10 Lorenz dominance To analyse how different elements of the UK tax system affect inequality we can use the notion of Lorenz dominance: Lorenz dominance: x L x if s q sq for all q, with > for some q (i.e. the qth cumulative for the dominant distribution is above or the same as the dominated) If the distribution post tax/benefit dominates the distribution pre tax/benefit then the tax/benefit is progressive (and vice versa)
11 Cash benefits Cash benefits include contributory benefits (recouped through National Insurance (NI) payments made by workers) and noncontributory benefits. They include state retirement pensions, child tax credits and housing benefits. Of the main categories of benefits, 87% goes to the bottom two quintiles with the majority going to the bottom Not surprisingly the Gross Income distribution Lorenz dominates the Original Income distribution indicating cash benefits are progressive: Type of income 1 st quintile 1:2 quintile 1:3 quintile 1:4 quintile Original income Gross income
12 Direct taxes Direct taxes include income tax, National Insurance (NI) and council tax. Higher income groups pay both higher amounts of and higher proportions of their income in direct tax (the top quintile paid an average of 18,500 per household in 2006/7 while the bottom quintile paid 1,200). The exception to this is council tax which is levied on housing characteristics. Similar to cash benefits, as shown below, the Disposable Income distribution Lorenz dominates the Gross Income distribution meaning direct taxation, on the whole, is progressive: Type of income 1 st quintile 1:2 quintile 1:3 quintile 1:4 quintile Gross income Disposable income
13 Indirect taxes Indirect taxes include VAT, sin and other taxes and the amount paid by a household is related to expenditure rather than income. The proportion paid in indirect tax tends to be lower for households at the top of the distribution compared with those lower down (16% in the top quintile and 20% for the bottom). As a result of taking up a higher proportion of income of those further down the distribution, indirect taxes are regressive and the Post Tax distribution is Lorenz dominated by the Disposable income distribution: Type of income 1 st quintile 1:2 quintile 1:3 quintile 1:4 quintile Disposable income Post tax income
14 Summary At the first tier, the top quintile group receive 51% per cent of all original income and the bottom only receives 3%. However, at the final tier, the bottom quintile have a larger of final income of 6% while the top has a lower of 44% This indicates the tax/benefit system as a whole is progressive
15 References: Petersen, H.G. (2004) Redistribution and the efficiency/justice trade-off, Studi Economici, no. 82, 2004:1 Cowell, F.A. (1988) Inequality decomposition: Three bad measures, Bulletin of Economic Research, 40:4 Jones, F. (2008) The effects of taxes and benefits on household income, 2006/07, Economic and Labour Market Review, 2,
Welfare Analysis for Public Economics EC426
Welfare Analysis for Public Economics Frank Cowell EC426 http://darp.lse.ac.uk/ec426 28 September 2015 Outline Ethical basis Fundamentals Philosophies compared Welfare and values SWF: Axiomatic approach
More informationIncome distribution and redistribution
Income distribution and redistribution HMRC-HMT Economics of Taxation http://darp.lse.ac.uk/hmrc-hmt Frank Cowell, 7 December 2015 Overview... Income distribution and redistribution Income distribution
More informationCan a Poverty-Reducing and Progressive Tax and Transfer System Hurt the Poor?
Can a Poverty-Reducing and Progressive Tax and Transfer System Hurt the Poor? Sean Higgins Nora Lustig Department of Economics Tulane University World Bank June 19, 2015 Scrapping of Reduced VAT Rates
More informationCIE Economics A-level
CIE Economics A-level Topic 3: Government Microeconomic Intervention b) Equity and policies towards income and wealth redistribution Notes In the absence of government intervention, the market mechanism
More informationEconomics 448: Lecture 14 Measures of Inequality
Economics 448: Measures of Inequality 6 March 2014 1 2 The context Economic inequality: Preliminary observations 3 Inequality Economic growth affects the level of income, wealth, well being. Also want
More informationPoverty, Inequality, and Development
Poverty, Inequality, and Development Outline: Poverty, Inequality, and Development Measurement of Poverty and Inequality Economic characteristics of poverty groups Why is inequality a problem? Relationship
More informationUnderstanding Income Distribution and Poverty
Understanding Distribution and Poverty : Understanding the Lingo market income: quantifies total before-tax income paid to factor markets from the market (i.e. wages, interest, rent, and profit) total
More informationChapter 5 Poverty, Inequality, and Development
Chapter 5 Poverty, Inequality, and Development Distribution and Development: Seven Critical Questions What is the extent of relative inequality, and how is this related to the extent of poverty? Who are
More informationPublic Economics: Poverty and Inequality
Public Economics: Poverty and Inequality Andrew Hood Overview Why do we use income? Income Inequality The UK income distribution Measures of income inequality Explaining changes in income inequality Income
More informationRecall the idea of diminishing marginal utility of income. Recall the discussion that utility functions are ordinal rather than cardinal.
Lecture 11 Chapter 7 in Weimer and Vining Distributional and other goals. Return to the Pareto efficiency idea that is one standard. If a market leads us to a distribution that is not Pareto efficient,
More informationDevelopment. AEB 4906 Development Economics
Poverty, Inequality, and Development AEB 4906 Development Economics http://danielsolis.webs.com/aeb4906.htm Poverty, Inequality, and Development Outline: Measurement of Poverty and Inequality Economic
More informationECON 256: Poverty, Growth & Inequality. Jack Rossbach
ECON 256: Poverty, Growth & Inequality Jack Rossbach Measuring Poverty Many different definitions for Poverty Cannot afford 2,000 calories per day Do not have basic needs met: clean water, health care,
More informationECON 340/ Zenginobuz Fall 2011 STUDY QUESTIONS FOR THE FINAL. x y z w u A u B
ECON 340/ Zenginobuz Fall 2011 STUDY QUESTIONS FOR THE FINAL 1. There are two agents, A and B. Consider the set X of feasible allocations which contains w, x, y, z. The utility that the two agents receive
More informationINTRODUCTION TAXES: EQUITY VS. EFFICIENCY WEALTH PERSONAL INCOME THE LORENZ CURVE THE SIZE DISTRIBUTION OF INCOME
INTRODUCTION Taxes affect production as well as distribution. This creates a potential tradeoff between the goal of equity and the goal of efficiency. The chapter focuses on the following questions: How
More informationRedistribution of Income (in Great Britain/explained by Lorenz Curves)
Redistribution of Income (in Great Britain/explained by Lorenz Curves) The Government can redistribute from the rich to the poor by progressive taxes or by regressive benefits. Taxes are progressive if
More informationECON 1100 Global Economics (Fall 2013) The Distribution Function of Government portions for Exam 3
ECON Global Economics (Fall 23) The Distribution Function of Government portions for Exam 3 Relevant Readings from the Required Textbooks: Economics Chapter 2, Income Distribution and Poverty Problems
More informationOCR gcse economics. Topic Companion. National and International Economics.
OCR gcse economics Topic Companion National and International Economics OCR GCSE Economics topic companion: National and International Economics Page 2 Contents Chapter 1 Introduction to the National Economy
More informationChapter 3 Introduction to the General Equilibrium and to Welfare Economics
Chapter 3 Introduction to the General Equilibrium and to Welfare Economics Laurent Simula ENS Lyon 1 / 54 Roadmap Introduction Pareto Optimality General Equilibrium The Two Fundamental Theorems of Welfare
More informationThe role of taxes and transfers in reducing income inequality
The role of taxes and transfers in reducing income inequality INEQUALITY IN CANADA: DRIVING FORCES, OUTCOMES AND POLICY FEBRUARY 24 & 25, 214 Andrew Heisz and Brian Murphy Income Statistics Division, Statistics
More informationANSWER: We can find consumption and saving by solving:
Economics 154a, Spring 2005 Intermediate Macroeconomics Problem Set 4: Answer Key 1. Consider an economy that consists of a single consumer who lives for two time periods. The consumers income in the current
More informationSecond Hour Exam Public Finance Fall, Answers
Second Hour Exam Public Finance - 180.365 Fall, 2004 Answers 365HourExam2-2004.tex 1 Multiple Choice (3 pt each) Correct answer indicated by 1. When the average buyer of an insurance policy is likely to
More informationSocial Situation Monitor - Glossary
Social Situation Monitor - Glossary Active labour market policies Measures aimed at improving recipients prospects of finding gainful employment or increasing their earnings capacity or, in the case of
More informationIntroductory Economics of Taxation. Lecture 1: The definition of taxes, types of taxes and tax rules, types of progressivity of taxes
Introductory Economics of Taxation Lecture 1: The definition of taxes, types of taxes and tax rules, types of progressivity of taxes 1 Introduction Introduction Objective of the course Theory and practice
More informationInequality and Social Welfare
Inequality and Social Welfare Outline Q. Wodon and S. Yitzhaki 1. Introduction 2. Inequality measures and decompositions 2.1. Inequality measures and the extended Gini 2.2. Source decomposition of the
More informationRamsey taxation and the (non?)optimality of uniform commodity taxation. Jason Lim and Sam Hinds
Ramsey taxation and the (non?)optimality of uniform commodity taxation Jason Lim and Sam Hinds Introduction (I/II) In this presentation we consider the classic Ramsey taxation problem of maximising social
More informationAre the Poorest Being Left Behind? Reconciling Conflicting Views on Poverty and Growth
ILO Seminar March 24 2015 Are the Poorest Being Left Behind? Reconciling Conflicting Views on Poverty and Growth Martin Ravallion 1 A widely held view: The poorest of the world are being left behind. We
More informationECON 1000 (Fall 2017 Section 07) Exam #3C
ECON 1 (Fall 217 Section 7) Exam #3C Multiple Choice Questions: (3 points each) 1. I am taking of the exam. C. Version C 2. In the textbook, was described as an ill-governed kleptocracy in which corruption
More informationECON 1000 (Fall 2017 Section 07) Exam #3A
ECON 1 (Fall 217 Section 7) Exam #3A Multiple Choice Questions: (3 points each) 1. I am taking of the exam. A. Version A 2. In the textbook, was described as an ill-governed kleptocracy in which corruption
More informationECON 1000 (Fall 2017 Section 07) Exam #3B
ECON 1 (Fall 217 Section 7) Exam #3B Multiple Choice Questions: (3 points each) 1. I am taking of the exam. B. Version B 2. In the textbook, was described as an ill-governed kleptocracy in which corruption
More informationPoverty and income inequality
Poverty and income inequality Jonathan Cribb Public Economics Lectures, Institute for Fiscal Studies 17 th December 2012 Overview The standard of living in the UK Income Inequality The UK income distribution
More informationLaw and Economic Justice
University of Oklahoma College of Law From the SelectedWorks of Jonathan B. Forman April 29, 2011 Law and Economic Justice JONATHAN B FORMAN, University of Oklahoma Available at: https://works.bepress.com/jonathan_forman/170/
More informationPublic economics: Inequality and Poverty
Public economics: Inequality and Poverty Chris Belfield Overview Measuring living standards Why do we use income? Accounting for inflation and family composition Income Inequality The UK income distribution
More informationEconomics 2002 HIGHER SCHOOL CERTIFICATE EXAMINATION. Total marks 100. Section I. Pages 2 8
2002 HIGHER SCHOOL CERTIFICATE EXAMINATION Economics Total marks 100 Section I Pages 2 8 General Instructions Reading time 5 minutes Working time 3 hours Write using black or blue pen Board-approved calculators
More informationEffects of taxes and benefits on UK household income: financial year ending 2017
Statistical bulletin Effects of taxes and benefits on UK household income: financial year ending 2017 Analysis of how household incomes in the UK are affected by direct and indirect taxes and benefits
More informationSacrifice Principle of Taxation. and how it related with ranking of income distribution and benefit principle in taxation
Sacrifice Principle of Taxation and how it related with ranking of income distribution and benefit principle in taxation Sacrifice Principle of Taxation a. What meaning can be given to the concept of equal
More informationInequality and Social Welfare
MPRA Munich Personal RePEc Archive Inequality and Social Welfare Quentin Wodon and Shlomo Yitzhaki World Bank April 2002 Online at http://mpra.ub.uni-muenchen.de/12298/ MPRA Paper No. 12298, posted 21.
More informationAnalysing household survey data: Methods and tools
Analysing household survey data: Methods and tools Jean-Yves Duclos PEP, CIRPÉE, Université Laval GTAP Post-Conference Workshop, 17 June 2006 Analysing household survey data - p. 1/42 Introduction and
More informationIncome Inequality and Poverty (Chapter 20 in Mankiw & Taylor; reading Chapter 19 will also help)
Income Inequality and Poverty (Chapter 20 in Mankiw & Taylor; reading Chapter 19 will also help) Before turning to money and inflation, we backtrack - at least in terms of the textbook - to consider income
More informationWhich Households Matter Most? Generalised Social Marginal Welfare Weights and Indirect Tax Reform
Which Households Matter Most? Generalised Social Marginal Welfare Weights and Indirect Tax Reform David Madden 1 and Michael Savage 1,2 1 University College Dublin, Ireland 2 Economic and Social Research
More informationThe Effects of Personal Income Taxation on Income Inequality in Australia
136 The Effects of Personal Income Taxation on Income Inequality in Australia Terry Alchin Department of Economics University of Wollongong ABSTRACT This paper attempts to show that the progressive income
More informationThe theory of taxation (Stiglitz ch. 17, 18, 19; Gruber ch.19, 20; Rosen ch.13,14,15)
The theory of taxation (Stiglitz ch. 17, 18, 19; Gruber ch.19, 20; Rosen ch.13,14,15) Tax incidence Taxation and economic efficiency Optimal taxation Introduction Public intervention is sometime needed
More informationTopic 11: Measuring Inequality and Poverty
Topic 11: Measuring Inequality and Poverty Economic well-being (utility) is distributed unequally across the population because income and wealth are distributed unequally. Inequality is measured by the
More informationIncome and Wealth Inequality A Lack of Equity
Income and Wealth Inequality A Lack of Equity Increasing inequality in the distribution of income and wealth is an example of market failure. Resources are not distributed equitably. Income Income is a
More informationGOVERNMENT POLICIES AND POPULARITY: HONG KONG CASH HANDOUT
EMPIRICAL PROJECT 12 GOVERNMENT POLICIES AND POPULARITY: HONG KONG CASH HANDOUT LEARNING OBJECTIVES In this project you will: draw Lorenz curves assess the effect of a policy on income inequality convert
More informationSESSION 8 Fiscal Incidence in South Africa
DG DEVCO Staff Seminar on Social Protection - from strategies to concrete approaches - 26-30 September 2016, Brussels SESSION 8 Fiscal Incidence in South Africa Jon JELLEMA Associate Director for Africa,
More informationCHAPTER \11 SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTION. decades. Income distribution, as reflected in the distribution of household
CHAPTER \11 SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTION Income distribution in India shows remarkable stability over four and a half decades. Income distribution, as reflected in the distribution of
More informationECON 1100 Global Economics (Fall 2013) The Distribution Function of Government
ECON Global Economics (Fall 23) The Distribution Function of Government Relevant Readings from the Required Textbooks: Economics Chapter 2, Income Distribution and Poverty Problems from the Economics Textbook:
More informationAssessing the distribution of impacts in global benefit-cost analysis
Assessing the distribution of impacts in global benefit-cost analysis Lisa A. Robinson & James K. Hammitt with supplement by Matthew D. Adler Harvard Center for Risk Analysis Outline BCA Separates analysis
More informationI INTRODUCTION. estimates of the redistributive effects of State taxes and benefits on the distribution of income among households. This publication 1
The Economic and Social Review, Vol. 13, No. 1, October, 1981, pp. 59-88. Redistribution of Household Income in Ireland by Taxes and Benefits BRIAN NOLAN* Central Bank of Ireland Precis: This study uses
More informationEconomics is the study of decision making
TOPIC 1 - INTRODUCTION TO THE GLOBAL ECONOMY WHAT IS ECONOMICS Economics is the study of decision making Every time we take a decision, we are choosing between at least two possibilities How do you take
More informationAppendix A for. Cutthroat capitalism versus cuddly socialism: Are Americans more meritocratic and efficiency-seeking than Scandinavians?
Appendix A for Cutthroat capitalism versus cuddly socialism: Are Americans more meritocratic and efficiency-seeking than Scandinavians? Supplementary analysis Introduction In this appendix, we provide
More informationPRIORITY-BASED MULTIDIMENSIONAL POVERTY (IN PROGRESS) Christophe Muller Aix-Marseille School of Economics, September 2013
PRIORITY-BASED MULTIDIMENSIONAL POVERTY (IN PROGRESS) 1 Christophe Muller Aix-Marseille School of Economics, September 2013 INTRODUCTION Multifarious measures of aggregate well-being Monetary-based poverty
More informationWP/18/12 An Application of Distribution-Neutral Fiscal Policy
WP/18/12 An Application of Distribution-Neutral Fiscal Policy by Sanjeev Gupta, Sugata Marjit, and Sandip Sarkar 2018 International Monetary Fund WP/18/12 IMF Working Paper Fiscal Affairs Department An
More informationEcon 892 Taxation Sept 13, Introduction. First Welfare Theorem (illustration by the Edgeworth Box)
Econ 892 Taxation Sept 13, 2011 Introduction First Welfare Theorem (illustration by the Edgeworth Box) The competitive equilibrium (the tangency) is Pareto efficient unless Public goods (positive externality)
More informationHow indirect taxes can be regressive and progressive
How indirect taxes can be regressive and progressive Office for National Statistics A National Statistics publication National Statistics are produced to high professional standards set out in the Code
More informationIncorporating Health Inequality Impacts into Cost-Effectiveness Analysis
Incorporating Health Inequality Impacts into Cost-Effectiveness Analysis Revised 26 April 2013 Prepared for the Elsevier On-line Encyclopaedia of Health Economics Miqdad Asaria 1, Richard Cookson 1 and
More informationIncome and Non-Income Inequality in Post- Apartheid South Africa: What are the Drivers and Possible Policy Interventions?
Income and Non-Income Inequality in Post- Apartheid South Africa: What are the Drivers and Possible Policy Interventions? Haroon Bhorat Carlene van der Westhuizen Toughedah Jacobs Haroon.Bhorat@uct.ac.za
More informationEconS Advanced Microeconomics II Handout on Social Choice
EconS 503 - Advanced Microeconomics II Handout on Social Choice 1. MWG - Decisive Subgroups Recall proposition 21.C.1: (Arrow s Impossibility Theorem) Suppose that the number of alternatives is at least
More informationANSWERS TO PROBLEM SET 6 - Public Finance J. Wissink - Cornell University
ANSWERS TO PROBLEM SET 6 - Public Finance J. Wissink - Cornell University 1. a. See diagram below. On the left, the tax is levied on the suppliers and on the right, demanders. (Note: T=true and M=market)
More informationPersonal Income Tax Progressivity in Pakistan
DOI: 10.7763/IPEDR. 2012. V50. 26 Personal Income Tax Progressivity in Pakistan Muhammad Waqas Ameer 1 and Saidatulakmal Mohd 1 1 School of Social Sciences, Universiti Sains Malaysia, 11800, Penang, Malaysia
More informationIncome Redistribution through Taxation in Canada and the United States: Implications for NAFTA
Law and Business Review of the Americas Volume 1 Number 4 Article 6 1995 Income Redistribution through Taxation in and the United States: Implications for NAFTA Sourushe Zandvakili Follow this and additional
More informationTHE REDISTRIBUTIVE EFFECT OF THE ROMANIAN TAX- BENEFIT SYSTEM: A MICROSIMULATION APPROACH 1
THE REDISTRIBUTIVE EFFECT OF THE ROMANIAN TAX- BENEFIT SYSTEM: A MICROSIMULATION APPROACH 1 Eva MILITARU Postdoctoral fellow, Bucharest University of Economic Studies, Romania Researcher, National Research
More informationIncome Inequality and Health in Washington State
Slide 1 of 31 Income Inequality and Health in Washington State Donald L. Patrick, Jesse J. Plascak, Shirley A.A. Beresford University of Washington Autumn Quarterly Meeting Biobehavioral Cancer Prevention
More informationTHE DISAGGREGATION OF THE GIN1 COEFFICIENT BY FACTOR COMPONENTS AND ITS APPLICATIONS TO AUSTRALIA
Review of Income and Wealth Series 39, Number 1, March 1993 THE DISAGGREGATION OF THE GIN1 COEFFICIENT BY FACTOR COMPONENTS AND ITS APPLICATIONS TO AUSTRALIA The University of New South Wales This paper
More informationIntroduction to Taxes and Transfers: Income Distribution, Poverty, Taxes and Transfers. 131 Undergraduate Public Economics Emmanuel Saez UC Berkeley
Introduction to Taxes and Transfers: Income Distribution, Poverty, Taxes and Transfers 131 Undergraduate Public Economics Emmanuel Saez UC Berkeley 1 REMINDER: Two General Rules for Government Intervention
More informationINCOME INEQUALITY AND OTHER FORMS OF INEQUALITY. Sandip Sarkar & Balwant Singh Mehta. Institute for Human Development New Delhi
INCOME INEQUALITY AND OTHER FORMS OF INEQUALITY Sandip Sarkar & Balwant Singh Mehta Institute for Human Development New Delhi 1 WHAT IS INEQUALITY Inequality is multidimensional, if expressed between individuals,
More informationPoverty and Income Distribution
Poverty and Income Distribution SECOND EDITION EDWARD N. WOLFF WILEY-BLACKWELL A John Wiley & Sons, Ltd., Publication Contents Preface * xiv Chapter 1 Introduction: Issues and Scope of Book l 1.1 Recent
More informationDistance Learning Programme. IAS Prelims INDIAN ECONOMY
Distance Learning Programme IAS Prelims INDIAN ECONOMY CONTENTS 1. Introduction to Economics 5-11 2. Concepts of National Income 12-20 3. Human Development 21-30 4. Poverty, Unemployment & Inequality 31-49
More informationCorruption and Inequality
Iranian Economic Review, Vol.10, No.17,Fall 2006 Corruption and Inequality Esmaiel Abounoori Abstract Income inequality can partly be explained by mean income through the labour productivity, employment
More informationRedistribution in a joint income-wealth perspective: a cross-country comparison 1
Redistribution in a joint income-wealth perspective: a cross-country comparison 1 < Draft paper, please do not quote> Sarah Kuypers 1, Francesco Figari 2, Gerlinde Verbist 1 1 Herman Deleeck Centre for
More information10. Fiscal Policy and the Government Budget
10. Fiscal Policy and the Government Budget 1 The Government Budget The government s budget is affected by: Government spending (outlay) Tax revenue (income) 2 Government Spending Major components of government
More informationEconomics 742 Homework #4
Economics 742 Homework #4 May 4, 2009 Professor Scholz Please turn in your answers to the following questions in class on Monday, May 4. Each problem is worth 40 points, except where noted. You can work
More informationDevelopment Economics Lecture Notes 4
Development Economics Lecture Notes 4 April 2, 2009 Hausmann-Rodrik-Velasco Growth Diagnostics 1. Low return on economic activity 1.1 Low Social returns 1.2 Low Appropriability 2. High cost of Finance
More informationUniversidade Católica Portuguesa Economics Program
Universidade Católica Portuguesa Economics Program Economics of Social Policy Test I Miguel Gouveia Spring 1999 I. Choose two very short answer questions (1 page max each). (2.5 points each) 1. What is
More informationThe effects of taxes and benefits on household income, 2009/10. Further analysis and. methodology. Further analysis and. Authors:
The effects of taxes and benefits on household income, 2009/10. Further analysis and Further analysis and methodology Authors: Andrew Barnard, Steve Howell and Robert Smith Office for National Statistics
More information1. Average Value of a Continuous Function. MATH 1003 Calculus and Linear Algebra (Lecture 30) Average Value of a Continuous Function
1. Average Value of a Continuous Function MATH 1 Calculus and Linear Algebra (Lecture ) Maosheng Xiong Department of Mathematics, HKUST Definition Let f (x) be a continuous function on [a, b]. The average
More informationAdjusting for age effects in cross-sectional distributions
The Stata Journal (yyyy) vv, Number ii, pp. 1 12 Adjusting for age effects in cross-sectional distributions Ingvild Almås Norwegian School of Economics and Business Administration and University of Oslo
More informationThe Effects of Taxes and Benefits on Household Income, 2012/13. Nathan Thomas
The Effects of Taxes and Benefits on Household Income, 2012/13 Nathan Thomas The Effects of Taxes and Benefits on Household Income... Income data are provided from the LCF and are combined with income
More informationChapter 6 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Chapter 6 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 6.1. Summary Poverty, inequality and unemployment are realities within the South African economy, and policy intervention is called for. One policy intervention
More informationOnline Appendix from Bönke, Corneo and Lüthen Lifetime Earnings Inequality in Germany
Online Appendix from Bönke, Corneo and Lüthen Lifetime Earnings Inequality in Germany Contents Appendix I: Data... 2 I.1 Earnings concept... 2 I.2 Imputation of top-coded earnings... 5 I.3 Correction of
More informationASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2. DUE DATE : 3:00 p.m.
Page 1 of 15 ASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2 DUE DATE : 3:00 p.m. 19 MARCH 2013 TOTAL MARKS : 100 INSTRUCTIONS TO CANDIDATES
More informationIncorporating Equity Metrics into Regulatory Review. SRA/RFF Conference, June 2009 Matthew D. Adler, University of Pennsylvania Law School
Incorporating Equity Metrics into Regulatory Review SRA/RFF Conference, June 2009 Matthew D. Adler, University of Pennsylvania Law School EO 12866 and Equity EO 12866 instructs agencies to be sensitive
More informationOptimal Progressivity
Optimal Progressivity To this point, we have assumed that all individuals are the same. To consider the distributional impact of the tax system, we will have to alter that assumption. We have seen that
More informationGrowth, Inequality, and Social Welfare: Cross-Country Evidence
Growth, Inequality, and Social Welfare 1 Growth, Inequality, and Social Welfare: Cross-Country Evidence David Dollar, Tatjana Kleineberg, and Aart Kraay Brookings Institution; Yale University; The World
More informationThe distributional impact of the crisis in Greece
The distributional impact of the crisis in Greece Manos Matsaganis & Chrysa Leventi Department of International and European Economics Athens University of Economics and Business EUROMOD Research workshop
More informationHOW SHOULD GOVERNMENTS STRUCTURE THE TAX SYSTEM?
LESSON 11 HOW SHOULD GOVERNMENTS STRUCTURE THE TAX SYSTEM? 143 LESSON 11 HOW SHOULD GOVERNMENTS STRUCTURE THE TAX SYSTEM? INTRODUCTION Collecting revenue through taxation creates complicated and controversial
More informationFISCAL POLICY INCIDENCE AND POVERTY REDUCTION: EVIDENCE FROM TUNISIA
PROSPERITY EQUALITY AND SUSTAINABILITY CONFERENCE FISCAL POLICY INCIDENCE AND POVERTY REDUCTION: EVIDENCE FROM TUNISIA Ahmed Moummi, Nizar Jouini and Nora Lustig (New-Delhi, June 2016) AFRICAN DEVELOPEMENT
More informationIncome inequality in the wake of the crisis
Income inequality in the wake of the crisis NERO 2012 meeting OECD, 18 June 2012 Michael Förster, OECD Social Policy Division www.oecd.org/els/social/inequality OECD, Directorate for Employment, Labour
More informationInequality, poverty and the crisis in Greece
Inequality, poverty and the crisis in Greece Manos Matsaganis & Chrysa Leventi Department of International and European Economics Athens University of Economics and Business ETUI Monthly Forum Brussels
More informationPro-poor growth. Abdelkrim Araar, Sami Bibi and Jean-Yves Duclos. Workshop on poverty and social impact analysis Dakar, Senegal, 8-12 June 2010
Pro-poor growth Abdelkrim Araar, Sami Bibi and Jean-Yves Duclos Workshop on poverty and social impact analysis Dakar, Senegal, 8-12 June 2010 Pro-poor growth PEP and UNDP June 2010 1 / 43 Outline Concepts
More information18. Changes in Inequality in Australia and the Redistributional Impacts of Taxes and Government Benefits
18. Changes in Inequality in Australia and the Redistributional Impacts of Taxes and Government Benefits J Rob Bray Introduction This paper is concerned with trends in income inequality in Australia over
More informationThe Economic and Social Review, Vol. 32, No. 3, October, 2001, pp
1. O Donoghue article art 2/4/02 9:06 am Page 191 The Economic and Social Review, Vol. 32, No. 3, October, 2001, pp. 191 216 Redistribution over the Lifetime in the Irish Tax-Benefit System: An Application
More informationPUBLIC EXPENDITURE ANALYSIS
A 445296 PUBLIC SECTOR GOVERNANCE AND ACCOUNTABILITY SERIES PUBLIC EXPENDITURE ANALYSIS Edited by ANWAR SHAH THE WORLD BANK Washington, D.C. Contents Other Forthcoming Books of Related Interest ii Foreword
More informationGENDER AND INDIRECT TAX INCIDENCE IN GHANA
GENDER AND INDIRECT TAX INCIDENCE IN GHANA Isaac Osei-Akoto, Robert Darko Osei and Ernest Aryeetey ISSER, University of Ghana 2009 IAFFE ANNUAL CONFERENCE Simmons College Boston, MA, 26-28 June 2009 Data:-
More informationTax and fairness. Background Paper for Session 2 of the Tax Working Group
Tax and fairness Background Paper for Session 2 of the Tax Working Group This paper contains advice that has been prepared by the Tax Working Group Secretariat for consideration by the Tax Working Group.
More informationEmpirical public economics, part II. Thor O. Thoresen, room 1125, Friday 10-11
1 Empirical public economics, part II Thor O. Thoresen, room 1125, Friday 10-11 1 Reading Thoresen, T.O., E.E. Bø, E. Fjærli and E. Halvorsen (2012): A Suggestion for Evaluating the Redistributional Effects
More informationRedistribution via VAT and cash transfers: an assessment in four low and middle income countries
Redistribution via VAT and cash transfers: an assessment in four low and middle income countries IFS Briefing note BN230 David Phillips Ross Warwick Funded by In partnership with Redistribution via VAT
More informationEconomics 370 Microeconomic Theory Problem Set 5 Answer Key
Economics 370 Microeconomic Theory Problem Set 5 Answer Key 1) In order to protect the wild populations of cockatoos, the Australian authorities have outlawed the export of these large parrots. An illegal
More informationLinking a Dynamic CGE Model and a Microsimulation Model: Climate Change Mitigation Policies and Income Distribution in Australia*
Linking a Dynamic CGE Model and a Microsimulation Model: Climate Change Mitigation Policies and Income Distribution in Australia* Hielke Buddelmeyer, Nicolas Hérault, Guyonne Kalb and Mark van Zijll de
More informationAnalysing tax and social security policy: examples from Mexico and the UK David Phillips, Senior Research Economist, IFS
Analysing tax and social security policy: examples from Mexico and the UK David Phillips, Senior Research Economist, IFS Analysing tax, benefits and pensions policy Quantitative analysis of tax, benefits
More information