A Note of the Identification of the Bandwith for the Potential Redistribution Index Evaluation

• Autorzy: Edyta Mazurek
• Języki publikacji: EN

Abstrakty

EN

A decomposition of actual redistributive effect was proposed by Aronson Johnson and Lambert in 1992, in order to evaluate the potential redistributive effect. However this decomposition is not univocally determined, but as it can be calculated after having gathered incomes into groups of "close" equals, de facto it depends on the bandwidth chosen to split the income parade into contiguous income groups; it follows that the bandwidth has to be chosen according to proper criteria: Van de Ven, Creedy, Lambert (VCL criterion) propose to choose the bandwidths where potential redistributive indexes are maxima. However the literature proposes more than one index to measure the potential redistribution of a tax system and the maxima associated to each of them do not necessarily coincide and, moreover, they do not generally show a regular sequence of values leading to the global maxima. The main aim of this paper is to contribute to the problem of defining a proper bandwidth which can split the income parade into close equal groups: VCL criterion is considered together to a minima criterion recently proposed by Vernizzi and Pellegino (VP criterion). Empirical evidence is obtained by a data set of incomes and taxes collected by two Lower-Silesian revenue offices. The analysis were performed by autor's own programmes written in the "R" language. (original abstract)

Słowa kluczowe

EN

Redistribution of income; Taxation of income

PL

Redystrybucja dochodów; Opodatkowanie dochodów

• Czasopismo: Zeszyty Naukowe Instytutu Zarządzania i Marketingu Akademii im. Jana Długosza w Czestochowie. Pragmata Tes Oikonomias
• Rocznik: 2009
• Numer: z. 3
• Strony: 247--251

Twórcy

autor

Edyta Mazurek

Bibliografia

• [1] Aronson J.P., Lambert P.J., Inequity decomposition analysis and Gini coefficient revised, The Economical Journal, 1993,103, pp. 1221-1227.
• [2] Aronson J.P., Lambert P.J., Decomposing the Gini coefficient to reveal the vertical, horizontal and reranking effects of income taxation, National Tax Journal, 1994,47, pp. 273-294.
• [3] Aronson J.P., Johnson P.J., Lambert P.J., Redistributive effect and unequal income tax treatment, The Economical Journal, 1994, 104, pp. 262-270.
• [4] Kakwani N.C., On the measurement of tax progressivity and redistributive effect of taxes with applications to horizontal and vertical equity, Advances in Econometrics, 1984, 3, pp. 149-168.
• [5] Kim K., Lambert P.J., Redistributive Effect of U.S. Taxes andPubblic Transfers, 1994-2004, Public Finance Review, 20, n. 10, 2008, pp. 1-24.
• [6] Lambert P.J., The Distribution and Redistribution of Income. A Mathematical Analysis, Manchester Univ. Press 1993.
• [7] R Development Core Team (2008) R: A language and environment for statistical computing. R, Foundation for Statistical Computing, Vienna, Austria. ISBN 3-900051-07-0, URL http://www.Rproject.org 2008.
• [8] Urban I., Lambert P.J., Redistribution, horizontal inequity and reranking: how to measure them properly, Public Finance Review 2008 (forthcoming)
• [9] Van de Ven J., Creedy J., Lambert P.J., Close equals and calculation of the vertical, horizontal and reranking effects of taxation, Oxford Bulletion of Economics and Statistics, 63, 3,2001, pp.381-394.
• [10] Vernizzi A., Pellegrino S., On determining "close equals groups" in decomposing redistributive and reranking effects, SIEP, WP 2007-602.