The social welfare implications of the zenga index. It is the difference between a concentration index. Graphically the kakwani index is represented as twice the area between. Research article open access new evidence on financing. The concentration curve can be used to examine inequality not just in health outcomes but in any health sector variable of interest. Tax progressivity of personal wages and income inequality. This is a remarkable achievement since greater redistribution has been attained through significantly lower tax revenue. How to shrink a pdf file that is too large techwalla. The inference procedures are illustrated by applying them to luxembourg income study microdata for sweden, the united kingdom, and the united states before and after periods of tax reform. A note on the maximum value of the kakwani index springerlink. The vertical equity index v is equal to kakwani progressivity index k pt scaled by the average tax rate tx, and normalized by gx, as shown by 7. It is equal to the difference between the gini index for the social. Defined as twice the area between the concentration curve for a payment for taxes or health care etc. Paper for the 5th ecineq conference in bari, 2224 july 20.
By richard morochove, pcworld practical it insight from tony bradley todays best tech deals picked by pcworlds editors top deals. Kakwani index is equal twice the area between the lorenz curve and the concentration curve of a tax, or transfer. The social welfare implications of progressivity measures have yet to be explored adequately in the literature. Aug 10, 2019 it suggests a measure of progressive capacity of tax systems, based on the kakwani index, but independent of pretax income distributions. Graduate thesis or dissertation household healthcare. The kakwani index is a measure of the progressivity of a social intervention, and is used by social scientists, statisticians, and economists. Kakwani index equity in access to antiretroviral therapy. For a proportional or flat tax, the beforetax income curve and the tax curve will overlap since the cumulative. The kakwani index of tax progressivity is given by the difference between the concentration index of taxes. A negative index regressively suggests a lower proportion of income. Analyzing the relationship between personal income tax. Stata module for decomposition of progressivity measurements.
To combine pdf files into a single pdf document is easier than it looks. The kakwani index is used to derive tax progressivity for all, male, female, white and african american personal wage income of cps respondents, respectively. Differently from the gini index, the concentration index is usually expressed as a function of the underlying concentration curve. It is computed as the difference between the betweengroups concentration index for payments and g x. In effect, the vertical redistribution generated by a given level of progressivity is scaled by the average rate g. The kakwani index and the gini coefficient are used to measure progressivity and redistributive effects respectively.
Adobe designed the portable document format, or pdf, to be a document platform viewable on virtually any modern operating system. This means it can be viewed across multiple devices, regardless of the underlying operating system. For example, it has been used to assess whether subsi. The paper concentrates on the poverty measure proposed by kakwani. This is also the difference between the concentration index of the tax ic x and the gini index of gross income. Overall, the kakwani index of progressivity of health financing is estimated at 0. Analysis of equality in iranian household healthcare. The kakwani index is used to derive tax progressivity. Whereas kakwani 1997 technique is concerned, it has never been employed in pakistan. A transfer is progressive regressive in relative terms if the proportion received in relation. Designmethodologyapproach lorenz dominance analysis and kakwani progressivity index were applied on data from 20102011 household income, expenditure, and consumption survey and the national health accounts 2011 using stata to evaluate the progressivity of each source of healthcare.
Decomposition of progressivity and inequality indices. The horizontal inequity index h is a difference between the concentration coefficient of posttax income x dn and gn, normalized by gx, as in 6. The kakwani index computes the departure from proportionality of a progressive income tax by measuring the difference between the concentration coefficient for tax liabilities and the gini coefficient for pretax incomes. The kakwani index computes the departure from proportionality of a progressive income tax by measuring the difference between the. The kakwani index of progressivity equals twice the area between the lorenz curve and the concentration curve of a tax. The kakwani index for overall health care finance, which measures the capacity of the health financing system to correct income inequity, changed from 0.
In this sense it is also derived from the sen index. If your pdf reader is displaying an error instead of opening a pdf file, chances are that the file is c. Our findings show that an inequality exists in health systems financing between the poor and the rich. The overall tax revenue of a realworld personal income tax cannot be eventually paid only by the richest taxpayer. The kakwani index, defined for taxes as the tax concentration coefficient minus the market income gini, will be positive negative if a tax is progressive regressive. Substituting 4 into 3 gives the elasticity of headcount ratio with respect to the mean income. Who pays for and who benefits from health care services in. In this section, we focus on a fiscal system with a single tax or transfer. Related but distinct tests for the reynoldssmolensky index of residual progression and the kakwani index of liability progression are provided. Government transfer programs aim to help those in need. Here we define concepts that we use throughout this paper to analyze the effect of a tax or a transfer on the income distribution.
If the kakwani index is normalized, an ordered weighted. Read on to find out just how to combine multiple pdf files on macos and windows 10. Pdf decompositions for the kakwani poverty index researchgate. The kakwani index of tax progressivity is given by the difference between the concentration index of taxes and the gini coefficient of income. Pdf file or convert a pdf file to docx, jpg, or other file format. The kakwani index of progressivity is based on the trapproach and equals twice the area between the lorenz curve and the concentration curve of a tax. In a graphical way, the kakwani index can be defined. Dental expenditure, progressivity and horizontal inequality. This has been documented by high labor market insurance and increased consumption of lowest income earners backed by higher tax progressivity jackson et al. This suggests that the fraction paying no tax has served as an effective proxy for overall tax progressivity.
If your scanner saves files as pdf portbale document format files, the potential exists to merge the individual files into one doc. For the urban households, initially, the index was higher in 2007, and it decreased in 2008 and 2009. For a further discussion, see kakwani 1977b, and more recently. Tax progressivity of personal wages and income inequality mdpi. If transfers decrease with income and taxes increase with income, the kakwani transfer is negative and kakwani tax is positive. It is a revised and upgraded version of inequal published by edward whitehouse in stb23. Oct 10, 2020 the relevance of tax progressivity measures to policymaking depends on whether they help assess the extent to which taxation leads to social welfare gains or losses. Pdf is a hugely popular format for documents simply because it is independent of the hardware or application used to create that file. A measure of the progressivity or regressivity of health care payment systems.
Kakwani index, but when combined with transfers or, with other taxes, they can. Pdf since sens seminal article in 1976, it is very known that every poverty measure should be sensitive to the three components of poverty. Two rounds of surveys were conducted, the first in 2003,619 individuals in 3946 households and the second in 2008 12,973 individuals in 3958 households. Kakwani and lambert 1998 state three axioms which should be respected by an equitable tax system. The redistributive efficiency index was compared to the kakwani index for taxesbenefits in eu countries by using euromod baselines. The new yahoopowered ads for adobe pdf service makes it easy to place payperclick ads in your pdf files. Measuring the redistributive impact of taxes and transfers. The kakwani index is the di erence between the concentration index and the gini index. Adept also outputs the kakwani index of progressivity. The overall trend of the kakwani index for urban and rural people was progressive.
An oversized pdf file can be hard to send through email and may not upload onto certain file managers. The tax progressivity results show a tax system that is partly progressive and mostly regressive. Some considerations on measuring the progressive principle. It can also be used to assess differences in health inequality across time and countries. If, by contrast, direct healthcare expenditures are a proportional source of healthcare financing, the kakwani index will be zero.
Depending on the type of scanner you have, you might only be able to scan one page of a document at a time. The main difference is that the weight of the poverty gap is here measured considering the total number of individuals and not just the number of poor individuals. The vertical equity index v is equal to kakwani progressivity index kpt scaled by the average tax rate tx, and normalized by. It is equal to the difference between the gini index for the social intervention, and the gini index for incomes before imposition of the policy intervention. However, taxes are a much smaller proportion of total health sector financing compared with out. Di erent progressivity measures are suggested by kakwani, suits 1977 and joumard, pisu. However, formula 6 is easier to estimate once the plugin estimator of. Open access protocol assessment of equity in healthcare. The various taxes are more progressive than outofpocket payments e.
Concentration indexes are calculated on pretax income and pretransfer income. It is a revised and upgraded version of inequal7 and inequal published by edward whitehouse in stb23. Luckily, there are lots of free and paid tools that can compress a pdf file in just a few easy steps. I paid for a pro membership specifically to enable this feature.
Table 4 kakwani indices of health care finance and share of health care finance in thailand from 2000 to 2006 27 table 5 the incidence of catastrophic health payments from 2000 to 2006 28 table 6 equity in health service utilization, concentration index by type and level of health care, 2001, 2003, 2006 and 2007 29. The kakwani index measures progressivity by comparing the distribution of the finance of healthcare among. Kakwani 1980, we can write where f z is the probability density function of income x at x z. It is named after the economist who first proposed and used it, nanak chand kakwani. Kakwani 1977 developed a measure of tax progressivity, popularly known as the kakwani index, which is widely used in the analysis of equity in taxation kakwani 1984, gerber et al. Index, developed by kakwani and pernia 2001, and the poverty equivalent growth rate, suggested by kakwani and son 2002, are applied to assess the degree of propoor growth an emphasis on changes in distribution. The kakwani index uses the gini framework to measure how progressive a social intervention is. Most electronic documents such as software manuals, hardware manuals and ebooks come in the pdf portable document format file format. Impacts of policies on poverty food and agriculture. Searching for a specific type of document on the internet is sometimes like looking for a needle in a haystack. Thus, this study employs datt and ravallion 1992 as well as kakwani 1997 techniques to decompose changes in poverty indices into growth and distributional effects. Table 2 below is taken from adam wagstaff and eddy van donorslaer, equity in hatlh care finance and delivery, in a. Request pdf the social welfare implications of the zenga index we introduce the social welfare implications of the zenga index, a recently proposed index of inequality.
Table shows for each quintile the average percentage of consumption spent on health care. The with analysis of grouped data generated from surveys on budget, consumption and. Use of the transition matrix4 or lorenz and concentration curves was considered much more preferable. The kakwani 1977 index of tax pro variance is between taxes and the cugressivity is defined as twice the area be mulative share of income recipients or of tween the concentration curves for taxes pretax income. This is the difference between the concentration index of taxes and an inequality index such as the gini index of gross incomes. In the same way as the gini and kakwani indices, the suits index also has a covariance form which has been traditionally used for estimation purposes. The positive contributors to the overall progressivity are direct taxes and private health insurance while the negative contributors include indirect taxes and oop expenditures. Jul 28, 2018 the kakwani index computes the departure from proportionality of a progressive income tax by measuring the difference between the concentration coefficient for tax liabilities and the gini coefficient for pretax incomes. A comparison of the kakwani and suits indices of tax progressivity. For s elfreported oral health, the horizontal inequality index was. May 01, 2012 the kakwani index of progressivity, kp, measures vertical equity by comparing the distribution of tax burden across income strata that is the distribution of tax burden is compared to the distribution of income kakwani, 1976. This article explains what pdfs are, how to open one, all the different ways. Includes 2008 recovery rebate credits, 200910 making work pay credits, and 201112 payroll tax holiday. By michelle rae uy 24 january 2020 knowing how to combine pdf files isnt reserved.
A pdf file is a portable document format file, developed by adobe systems. Comparing redistributive efficiency of taxbenefit systems. The positive contributors to the overall progressivity are direct taxes and private health insurance while the negative contributors include indirect taxes and. A transfer is progressive regressive in relative terms if the proportion received in relation to market income decreases increases as. In a seminal crosscountry study of oecd countries, wagstaff and van doorslaer 8, 9 computed kakwani indices for assessing the redistributive effects the various public and private sources of healthcare finance around the 1990s. In 2010, it increased again, reaching its highest level in the last year. This is the difference between the concentration index of taxes and the gini index of gross incomes. Kakwani index equals one, the prepayment income is distributed equally and all of the oop payments are borne by the richest person. Using this and other progressivity measures, the paper i documents a decline in progressivity over the last decades and ii examines the relationship between progressivity and economic growth. For example, safetynet programs transfer cash to the poor, who cannot typically meet their basic.
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