Abstract

http://ssrn.com/abstract=2003
 
 

References (28)



 
 

Citations (8)



 
 

Footnotes (26)



 


 



A Normative Approach to Measuring Classical Horizontal Inequity


Jean-Yves Duclos


Laval University; Institute for the Study of Labor (IZA)

Peter J. Lambert


University of Oregon - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)


December 1996

Abstract:     
This paper makes a new attack on the old problem of measuring horizontal inequity (HI). A local measure of HI is proposed, and aggregated into a global index. Whilst other approaches have captured the welfare gain which would come from eliminating HI revenue-neutrally, our global index provides a measure of the revenue gain per capita which would come from eliminating HI welfare-neutrally. When expressed as a fraction of mean post-tax income, the measure can be viewed as a negative component in the Blackorby and Donaldson (1984) index of tax progressivity, quantifying the loss of vertical performance arising from differences in the tax treatment of equals. Being money-metric, the measure can also be easily and intuitively interpreted. We propose non-parametric estimation procedures to obviate the important identification of equal problem. To our knowledge, this provides the first consistent statistical solution to measuring classical horizontal inequity. The method is applied to the Canadian distributions of gross and net incomes in 1981 and 1990.

Number of Pages in PDF File: 29

JEL Classification: C14, D63, H23

working papers series





Download This Paper

Date posted: February 6, 1997  

Suggested Citation

Duclos, Jean-Yves and Lambert, Peter J., A Normative Approach to Measuring Classical Horizontal Inequity. December 1996. Available at SSRN: http://ssrn.com/abstract=2003 or http://dx.doi.org/10.2139/ssrn.2003

Contact Information

Jean-Yves Duclos (Contact Author)
Laval University ( email )
Quebec G1K 7P4
Canada
418-656-7096 (Phone)
418-656-9727 (Fax)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Peter J. Lambert
University of Oregon - Department of Economics ( email )
Eugene, OR 97403
United States
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Feedback to SSRN


Paper statistics
Abstract Views: 1,189
Downloads: 251
Download Rank: 70,792
References:  28
Citations:  8
Footnotes:  26

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.328 seconds