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Decomposition of s-concentration curves

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Abstract. 

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.
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Keywords: D63; H20

Document Type: Research Article

Affiliations: 1: Department of Economics, University of Ottawa 2: Lameta, Université Montpellier I

Publication date: 2008-11-01

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