The exponential family of distributions offers considerable scope for the analysis of income distributions because of its ability to 'nest' many densities and the possibility of deriving special cases explicitly from labour demand and supply models. This paper presents several estimation methods...

This paper explores a method of examining the effects of macroeconomic variables on the personal distribution of income over time. The approach involves modelling the complete distribution of income in each year using a conditional mixture distribution. The parameters of the distribution are...

This paper examines the computation of exact welfare measures in the context of labour supply models. It is suggested that the standard method of computing compensating and equivalent variations does not allow sufficiently for the nonlinearity of the budget constraint. An exact method is...

This paper presents an empirical analysis of the welfare effects of several indirect tax reforms in Australia. The welfare changes are measured in terms of equivalent variations and equivalent incomes, using estimates of the linear expenditure system for each of a range of income groups. The...

This paper examines the Gini-based method of decomposing the redistributive effect of taxation into vertical, horizontal, and reranking components. The consequences of different bandwidth choices, used to identify close-equals groups to estimate the horizontal effect, are discussed. Two opposing...

This paper provides a unified framework in which to examine income and consumption tax revenue elasticities. In addition, new results are established in relation to consumption taxes. These results help to provide a better understanding of the determinants of the revenue responsiveness...