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Measuring Progressivity and Vertical Equity

Part of the Economic Studies in Inequality, Social Exclusion and Well-Being book series (EIAP, volume 2)

Abstract

As is well-known, the assessment of tax and transfer systems draws mainly on two fundamental principles: efficiency and equity. The former relates to the presence of distortions in the economic behavior of agents, while the latter focuses on distributive justice. Vertical equity as a principle of distributive justice is rarely questioned as such, although the extent to which it must be precisely weighted against efficiency is a matter of intense disagreement among policy analysts. A principle of redistributive justice which gathers even greater support is that of horizontal equity, the equal treatment of equals. The HE principle is often seen as a consequence of the fundamental moral principle of the equal worth of human beings, and as a corollary of the equal sacrifice theories of taxation. This chapter and the next cover in turn the measurement of each of these principles.

Keywords

Distributive Justice Concentration Index Lorenz Curve Lorenz Dominance Vertical Equity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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