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As an alternative to the conventional methods for measuring chronic poverty, this paper proposes an interpersonal comparable measure of permanent income as a basis for defining and measuring chronic poverty. This approach accounts for the fact that individuals regularly undertake inter-period...
Persistent link: https://www.econbiz.de/10011968267
In this paper, we introduce and apply a general framework for evaluating long-term income distributions according to the Equality of Opportunity principle (EOp). Our framework allows for both an ex-ante and an ex-post approach to EOp. Our ex-post approach relies on a permanent income measure...
Persistent link: https://www.econbiz.de/10011968390
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. The first step consists of aggregating the income stream of each individual into a measure of permanent income, which...
Persistent link: https://www.econbiz.de/10011968392
Do market-orientated economies with relatively large cross-sectional levels of inequality have higher income mobility and therefore less permanent inequality? To answer this question, we introduce a formal representation of income mobility as an equalizer of permanent income. The proposed...
Persistent link: https://www.econbiz.de/10011968539
characteristics to others. The model is one of rational voting and generates the following predictions: (i) The paradox of not voting … does not arise, because the benefi t of voting does not vanish with population size. (ii) Turnout in elections is … positively related to the size of the local community and the importance of social interactions. (iii) Voting may exhibit …
Persistent link: https://www.econbiz.de/10010329998
Empirical findings on the relationship between income inequality and redistribution from a cross-country perspective … are not conclusive. One reason may be that observers have in mind different concepts of redistribution. A major factor is … at all) by different measures of redistribution. The ambiguities can be resolved by applying the "transplant …
Persistent link: https://www.econbiz.de/10011968419
Any contribution to a pay-as-you-go pension system may be considered mandatory savings to the extent that it gives a claim to a future benefit. Contributors to the economic literature have argued that an increase in this savings component will lower implicit marginal tax rates, thereby reducing...
Persistent link: https://www.econbiz.de/10011968285
An important problem in the analysis of intertemporal choice processes is how to justify the choice of mathematical structure of the transition probabilities. A related and delicate identification problem is to separate the effect of unobserved variables from the influence on preferences from...
Persistent link: https://www.econbiz.de/10011967944
less in favor of income redistribution. In societies with a high level of actual social mobility, income inequality is …
Persistent link: https://www.econbiz.de/10010329928
Indirect taxes on transportation activities that pollute can correct externalities and close the gaps between private and social costs. However, policy makers often find such Pigou taxes difficult to implement because of political resistance due to possibly adverse affects on equity. For this...
Persistent link: https://www.econbiz.de/10011968198