Measuring the redistributive impact of taxes and transfers in the presence of reranking

Produced by: 
Tulane University
Available from: 
November 2016
Paper author(s): 
Ali Enami
Fiscal Policy - Public and Welfare Economics

This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income changes as a result of fiscal redistribution. Through various examples, this paper shows how reranking--a common feature in all actual fiscal systems--reduces the predictive power of simple measures of progressivity in assessing the actual effect of taxes and transfers on inequality.


Research section: 
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