Decomposition of s-concentration curves
For any given order of inverse stochastic dominance, standard concentration curves are decomposed into three components, called contribution curves. Those components correspond 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, as welfare expansions may be costly in terms of particular inequalities, we propose targeted fiscal reforms.
Document Type: Research Article
Publication date: November 1, 2008