Discussion Papers no. 434

With an application to Norway 1992-2004

Base independence in the analysis of tax policy effects

Publisert:

Åpne og les publikasjonen i PDF (35 sider)

The analysis contrasts results of two recently expounded micro-level data approaches to derive robust intertemporal characterizations of redistributional effects of income tax schedules; the fixed-income procedure of Kasten, Sammartino and Toder (1994) and the transplant-and-compare method of Dardanoni and Lambert (2002). Our study is normative in that the Blackorby and Donaldson (1984) index of tax progressivity is employed. This enables contributions from vertical redistribution and horizontal inequity also to be assessed, using for the latter one classical measure and one no reranking measure. When the competing methodologies are applied to Norwegian data for 1992–2004, their respective strengths and weaknesses are revealed. The transplant-and-compare procedure is found to have a number of advantages.

Om publikasjonen

Tittel

Base independence in the analysis of tax policy effects. With an application to Norway 1992-2004

Ansvarlige

Peter J. Lambert, Thor Olav Thoresen

Serie og -nummer

Discussion Papers no. 434

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

35

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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