Analyzing the impact of indirect tax reforms on rank-dependent social welfare functions: a positional dominance approach
A new approach is developed to identify marginal tax reforms for pairs of commodities and to test for the robustness of their impacts on Yaari’s dual social welfare functions. The rank-dependent social evaluation approach gives rise to a new device, the s-concentration curve, which is a generalization of the standard concentration curve. The s-concentration curves are provided for every order of positional dominance and an illustration is performed using Canadian data.
KeywordsConcentration Curve Econ Theory Stochastic Dominance Social Welfare Function Lorenz Curve
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