There is now a large and complex literature on optimal income taxation, within the context of second-best welfare economics. This paper considers the potential role of this analysis in the practical design of direct tax and transfer structures. It is stressed that few results are robust, even in...

This paper considers the question whether it is possible, using information about only the distribution of earnings, to identify some of the labour supply incentive effects of a tax and transfer system.

This paper examines the pattern of income changes over the life cycle for both males and females, using information from a special data set compiled by the New Zealand Inland Revenue Department.

The purpose of this paper is to extend the analysis of built-in flexibility to various forms of consumption taxation. This is useful in view of the extensive use of indirect taxes. Section 2 begins with basic definitions and a discussion of income taxation, concentrating on the multi-step case....

This paper examines the Gini (1912) coefficient of concentration using the framework set out by Dalton (1920) for evaluating a measure of inequality. Particular attention is paid to limited distributions and the associated concept of 'perfect inequality'. It is argued that a rescaled version of...

This paper decomposes the redistributive effect on annual and lifetime inequality of a range of taxes and transfers in Australia, using a dynamic cohort lifetime simulation model. The model allows for family formation, births of children, labour force participation of male and females, along...

The earnings distribution of full-time employee male and female immigrants to Australia are contrasted with those of native-born workers using data from ABS Income Distribution Surveys spanning the period 1982 to 1996. In addition to presentation of summary measures of distributional features,...

Evidence shows that real-effort investments can affect bilateral bargaining outcomes. This paper investigates whether similar investments can inhibit equilibrium convergence of experimental markets. In one treatment, sellers’ relative effort affects the allocation of production costs, but a...