When an income tax or tax-benefit system is applied to the distribution of personal incomes, three effects on the distribution of peoples' living standards can be discerned. First, people with equal pre-tax living standard may not receive the same or comparable tax treatment, and in consequence...

This paper sets out to explore theoretically how a change in the distribution of disposable income affects the market demand for a good or service. With the help of only minimal information on the shape of the Engel curve and the transition from one distribution to the other, a variety of...

Methods of testing econometrically for horizontal inequity (HI) induced by tax systems are examined. Both socially homogeneous and heterogeneous income-receiving populations are analysed. The favoured econometric methods are applied to cross-section data in order to determine the magnitude and...

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