Based on the assumption that the sectoral income distributions follow a Pareto distribution, a simple approximation to the aggregate Gini coefficient for a two-sector economy was developed which works on a minimum of information. As a matter of fact, merely the sectoral Gini coefficients, the...

When capital is perfectly mobile across countries and labour is fixed, a source-based tax on capital both reduces and redistributes world income. We show that under plausible circumstances there always exists a country that benefits from introducing such a tax.