Abstract
In this study, we reconsider the effect of variable transformations on income inequality. Under the assumption that the theorems should hold for all income distributions, earlier given sufficient conditions are also necessary. Different versions of the conditions are compared. Furthermore, one can prove that the assumption of continuity of the transformations can be implicitly included in the necessary and sufficient conditions, and hence, it can be dropped from the assumptions. The effects of two transformations on income inequality are compared.
Original language | English |
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Peer-reviewed scientific journal | Theoretical Economics Letters |
Volume | 6 |
Issue number | 3 |
Pages (from-to) | 442-449 |
Number of pages | 8 |
ISSN | 2162-2078 |
DOIs | |
Publication status | Published - 06.2016 |
MoE publication type | A1 Journal article - refereed |
Keywords
- 112 Statistics and probability
- Discontinuity
- Income Distribution
- Income Inequality
- Lorenz Dominance
- Tax Policy
- Transfer Policy