Household equivalence scales and household taxation

Open Access
Authors
Publication date 1998
Number of pages 12
Publisher Universiteit van Amsterdam
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract Strictly equal utility is seldom used as a compensation principle in real-world policy applications. We specify less radical norms for deriving income tax rates and find that equivalence defined as equal proportional sacrifice best fits the observed income tax structure in the Netherlands. We use the Leyden welfare function of income as our measure of utility.
Document type Working paper
Language English
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