6533b82ffe1ef96bd1296435
RESEARCH PRODUCT
Horizontal inequity comparisons
Peter J. LambertValentino Dardanonisubject
Joint probability distributionStatistical inferenceEconomicsAssociation (psychology)Mathematical economicsAxiomPublic financedescription
In this paper, we expound the idea that horizontal inequity (HI) in different tax systems be compared by transplanting the HI from one tax system into the other, as a mapping between its pre- and post-tax living standard distributions, and then applying known results to compare the extent of association present in the two joint distributions. We make this idea operational by means of axioms which, we show, lead to an implementable procedure based on the `copula'. Statistical inference procedures are discussed, and illustrative empirical exercises are undertaken for the UK, Canadian and Israeli tax and benefit systems.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1998-10-01 | Working Paper Series |