cover image: Minimum Inequality Taxation, Average and Minimally Progressive Taxations and Depolarization

20.500.12592/nm6jrh

Minimum Inequality Taxation, Average and Minimally Progressive Taxations and Depolarization

8 Aug 2022

This notion of polarization is concerned with the spread and dispersion of the distribution of income from the middle position, the median. [...] Pc is simply the mean of order 0 c 1 of the absolute values of the deviations of individual incomes from the median, normalized by the median itself. [...] The ordinate of the relative bipolarization curve j of the distribution x Dn at the population fraction is the sum of the income n m x x shortfalls i , normalized by the factor nm x , of the first j individuals j i n nm x n whose incomes are below the median, from the median itself, where 1 j n ,n . [...] Mention-worthy among these are the Atkinson (1970) (relative) index, the (relative) generalized entropy family which contains the two Theil (1967, 1972) indices and half the squared coefficient of variation as particular cases, the Kolm (1976) (absolute) index, the variance, the Gini and the Bonferroni indices and their absolute sisters. [...] The comparison relies on the assumption that the total tax considered for generating the inequality minimizing taxation is the same as the actual total tax deduction.
Pages
30
Published in
India