Template-type: ReDIF-Paper 1.0
Author-Name: Irene Perrote Coste
Author-Workplace-Name: Universidad Europea de Madrid
Author-Name: Juan Gabriel Rodríguez Hernández
Author-Workplace-Name: Universidad Rey Juan Carlos
Author-Name: Rafael Salas del Marmol
Author-Email: R.Salas@ccee.ucm.es
Author-Workplace-Name: Departamento de Fundamentos del Análisis Económico I (Análisis Económico). Universidad Complutense de Madrid.
Title: A non-parametric decomposition of redistribution into vertical and horizontal components
Abstract: We use non-parametric methods to propose horizontal inequity (HI) measures that satisfy certain normative and statistical 
	properties. The HI measures tackle the problem of arbitrary definition of similar individuals and satisfy the horizontal 
	transfer principle. HI is measured by any index consistent with the distance between the estimated and actual post-tax 
	income Lorenz curves. This incorporates an ordinal view of HI. The total effect of a tax system can be decomposed into 
	welfare gain due to income redistribution free of HI and welfare loss due to HI. Other indices in the literature can be 
	seen as particular cases.
Classification-JEL: C14, D31, D63, H23.
Keywords:
 Vertical redistribution, Horizontal inequity, Social-welfare and non-parametric estimation.
Length: 31 pages
Creation-Date: 2001
Number:
 01-07
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra01-07.txt
File-URL: https://eprints.ucm.es/id/eprint/6731/1/0107.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:01-07