TY - JOUR
T1 - Equivalence scales, horizontal equity and optimal taxation under utilitarianism
AU - Balcer, Yves
AU - Sadka, Efraim
N1 - Funding Information:
*The research reported here was financially supported by NSF Grant DAR-7917376 and by funds granted to the Foerder Institute for Economic Research by Bank Leumi Le-Israel. Comments by two anonymous referees are gratefully acknowledged. The opinions expressed are those of the authors.
PY - 1986/2
Y1 - 1986/2
N2 - This paper analyzes the question of how differences in family size should be treated by the income tax system in order to achieve horizontal equity. Family size is incorporated into the demand system by the procedure of demographic scaling. Horizontal equity is defined as 'equal treatment of equals'. It is shown that when lump-sum taxes are not available and the government has to rely on income taxation, then the only way to entail equal utilities for household of different size is to equate the labor supplies and the per-standard-adult consumptions of these households.
AB - This paper analyzes the question of how differences in family size should be treated by the income tax system in order to achieve horizontal equity. Family size is incorporated into the demand system by the procedure of demographic scaling. Horizontal equity is defined as 'equal treatment of equals'. It is shown that when lump-sum taxes are not available and the government has to rely on income taxation, then the only way to entail equal utilities for household of different size is to equate the labor supplies and the per-standard-adult consumptions of these households.
UR - http://www.scopus.com/inward/record.url?scp=38249043382&partnerID=8YFLogxK
U2 - 10.1016/0047-2727(86)90026-5
DO - 10.1016/0047-2727(86)90026-5
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AN - SCOPUS:38249043382
SN - 0047-2727
VL - 29
SP - 79
EP - 97
JO - Journal of Public Economics
JF - Journal of Public Economics
IS - 1
ER -
