Properties of Non-Differentiable Tax Policies

In this study, we reconsider the effect of variable transformations on the redistribution of income. We assume that the density function is continuous. If the theorems should hold for all income distributions, the conditions earlier given are both necessary and sufficient. Different conditions are compared. One main result is that continuity is a necessary con-dition if one demands that the income inequality should remain or be reduced. In our previous studies, of tax policies the assumption was that the transformations were differentiable and satisfy a derivative condition. In this study, we show that it is possible to reduce this assumption to a continuity condition.
Gini Indices; Income Inequality; Income Redistributive Policies; Lorenz Curves; Lorenz Dominance