Decomposition of s-Concentration Curves

Paul Makdissi, Stéphane Mussard

Research output: Working paper

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Abstract

For any given order of stochastic dominance, standard concentration curves are decomposed into contribution curves corresponding to within-group inequalities, between-group inequalities, and transvariational inequalities. We prove, for all orders, that contribution curve dominance implies systematically welfare-improving tax reforms and conversely. Accordingly, we point out some undesirable fiscal reforms since a welfare expansion may be costly in terms of particular inequalities.
Original languageEnglish
PublisherCEPS/INSTEAD
Number of pages21
Publication statusPublished - 2006
Externally publishedYes

Publication series

NameIRISS Working Papers
PublisherCEPS/INSTEAD
No.2006-09

Keywords

  • concentration curves
  • contribution curves
  • stochastic dominance
  • tax reforms

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