Redistributive effect of taxes and transfers: evidence from China
Abstract
Highlights
- The comparative analysis of tax and transfer impact on income redistribution has been done based on the research of urban households in China in 2002–2009
- Rising positive impact of net transfers from the budget on the reduction of income inequality among urban population is demonstrated
- The impact of transfers on horizontal inequality reduction, and the impact of taxeson vertical inequality reduction is established
- The need to continue the tax reform and improve the social security system in order to reduce the inequality in the income of the population is demonstrated
For citation
Liu Baihui. Redistributive Effect of Taxes and Transfers: Evidence from China. Journal of Tax Reform, 2017, vol. 3, no. 1, pp. 43–51. DOI: 10.15826/ jtr.2017.3.1.030
Article info
Received February 14, 2017; accepted March 27, 2017
Keywords
Full Text
PDFReferences
Musgrave R. A., Thin T. Income tax progression, 1929–48. The Journal of Political Economy, 1948, vol. 56, no. 6, pp. 498–514.
Kakwani N. C. Measurement of Tax Progressivity: an International Comparison. The Economic Journal, 1977, vol. 87, no. 345, pp. 71–80.
Suits D. B. Measurement of tax progressivity. American Economic Review, 1977, vol. 67, no. 4, pp. 747–752.
Davies D. G. Measurement of Tax Progressivity: Comment. American Economic Review, 1980, vol. 70, no. 1, pp. 204–207.
Davidson R., Duclos J. Y. Statistical Inference for the Measurement of the Incidence of Taxes and Transfers. Econometrica, 1997, vol. 65, no. 6, pp. 1453–1465.
Atkinson A. B. Horizontal Equity and the Distribution of Tax Burden. In Aaron H., Boskin M. (eds.) The Economics of Taxation. Washington DC, Brookings Institution, 1980, pp. 3–18.
Plotnick R. A measure of horizontal inequity. The review of Economics and Statistics, 1981, vol. 63, no. 2, pp. 283–288.
Kakwani N. C. On the Measurement of Tax Progressivity and Redistributive Effect of Taxes with Applications to Horizontal and Vertical Equity. Advances in Econometrics, 1984, vol. 3, pp. 149–168.
Aronson J. R., Johnson P., Lambert P. J. Redistributive Effect and Unequal Income Tax Treatment. The Economic Journal, 1994, vol. 104, no. 422, pp. 262–270.
Aronson J. R., Lambert P. J. Decomposing the Gini Coefficient to Reveal the Vertical, Horizontal and Reranking Effects of Income Taxation. National Tax Journal of Econometrics, 1994, vol. 47, no. 2, pp. 273–294.
Urban I., Lambert P. J. Redistribution, Horizontal Inequity, and Reranking: How to Measure Them Properly. Public Finance Review, 2008, vol. 36, no. 5, pp. 563–587.
Pechman J. A. The future of the income tax. American Economic Review, 1990, vol. 80, no. 1, pp. 1–20.
Björklund A., Jäntti M. Intergenerational Income Mobility in Sweden Compared to the United States. American Economic Review, 1997, vol. 87, no. 5, pp. 1009–1018.
Wagstaff A., etc. Redistributive Effect, Progressivity and Differential Tax Treatment: Personal Income Taxes in Twelve OECD Countries. Journal of Public Economics, 1999, vol. 72, no. 1, pp. 73–98.
Zandvakili S. Income distribution and redistribution through taxation: An international comparison. Empirical Economics, 1994, vol. 19, no. 3, pp. 473–491.
Sahn D. E., Younger S. D., Simler K. R. Dominance testing of transfers in Romania. Review of Income and Wealth, 2000, vol. 46, no. 3, pp. 309–327.
Wagstaff A., van Doorslaer E., Watanabe N. On Decomposing the Causes of Health Sector Inequalities with an Application to Malnutrition Inequalities in Vietnam. Journal of Econometrics, 2003, vol. 112, no. 1, pp. 207–223.
Lambert P. J. On the Redistribution Effect of Taxes and Benefits. Scottish Journal of Political Economy, 1985, vol. 32, no. 1, pp. 39–54.
Duclos J. Y. Progressivity, Redistribution and Equity, with Application to the Britain Tax and Benefit System. Public Finance / Finances Publiques, 1993, vol. 48, no. 3, pp. 350–365.
Urban I. Redistributive effects of direct taxes and social benefits in Croatia. Doct. Diss. Slovenia, 2010. 199 p.
DOI: https://doi.org/10.15826/jtr.2017.3.1.030
Copyright (c) 2017 Liu Baihui
© Journal of Tax Reform : ISSN 2414-9497 (online), ISSN 2412-8872 (print)