Showing 1 - 10 of 10
The purpose of this paper is to introduce and adopt a generalised version of Roemer's (1998) Equality of Opportunity (EOp) framework for analysing optimal income taxation. EOp optimal tax rules seek to equalise income differentials arising from factors beyond the control of the individual....
Persistent link: https://www.econbiz.de/10005077220
This paper is concerned with distributions of income and the ordering of related Lorenz curves. By introducing appropriate preference relations on the set of Lorenz curves, two altenative axiomatic characterization of Lorenz curve orderings are proposed. Moreover, the Gini coefficient is...
Persistent link: https://www.econbiz.de/10005148388
This paper is concerned with the problem of ranking Lorenz curves in situations where the Lorenz curves intersect and no unambiguous ranking can be attained witout introducing weaker ranking criteria than first-degree Lorenz dominance. To deal with such situations two alternative sequences of...
Persistent link: https://www.econbiz.de/10005148412
The purpose of this paper is to present an exercise where we identify optimal income tax rules under the constraint of fixed tax revenue. To this end, we estimate a microeconomic model with 78 parameters that capture heterogeneity in consumption-leisure preferences for singles and couples as...
Persistent link: https://www.econbiz.de/10004972523
As an alternative to the conventional methods for measuring chronic poverty, this paper proposes to use an interpersonal comparable measure of permanent income as a basis for defining and measuring chronic poverty. This approach accounts for the fact that individuals may undertake inter-period...
Persistent link: https://www.econbiz.de/10004972532
During the last two decades, the discrete-choice modelling of labour supply decisions has become increasingly popular, starting with Aaberge et al. (1995) and van Soest (1995). Within the literature adopting this approach there are however two potentially important issues that are worthwhile...
Persistent link: https://www.econbiz.de/10004972558
A major aim of most income distribution studies is to make comparisons of income inequality across time for a given country and/or compare and rank different countries according to the level of income inequality. However, most of these studies lack information on sampling errors, which makes it...
Persistent link: https://www.econbiz.de/10004980508
The purpose of this paper is to present an exercise where we identify optimal income tax rules according to various social welfare criteria, keeping fixed the total net tax revenue. Empirical applications of optimal taxation theory have typically adopted analytical expressions for the optimal...
Persistent link: https://www.econbiz.de/10004987986
This paper proposes a two-step aggregation method for measuring long-term income inequality and income mobility, where mobility is defined as an equalizer of long-term income. First, the income stream of each individual is aggregated into a measure of permanent income, which accounts for the...
Persistent link: https://www.econbiz.de/10005007509
A substantial body of empirical evidence shows that individuals overweight extreme events and act in conflict with the expected utility theory. These findings were the primary motivation behind the development of the rank-dependent utility theory. The purpose of this paper is to demonstrate that...
Persistent link: https://www.econbiz.de/10005427061