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Horizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013

dc.contributor.authorNolan, Matt
dc.date.accessioned2018-09-05T03:29:16Z
dc.date.accessioned2022-07-11T23:03:00Z
dc.date.available2018-09-05T03:29:16Z
dc.date.available2022-07-11T23:03:00Z
dc.date.copyright2018
dc.date.issued2018
dc.description.abstractBetween 1988 and 2013 New Zealand’s tax and welfare systems have experienced a significant period of change, with real benefit payments and tax rates both declining. When evaluating the perceived fairness of these reforms the focus has predominantly fallen on how average economic activity and income inequality changed. However, such evaluation is partial at best. In this paper I intend to extend the evaluation of tax-transfer policy change during this period by reframing the adjustment in the distribution of income (as proxied by the Gini coefficient) due to policy into “horizontal equity”, “vertical equity”, and “reranking” effects. This decomposition is achieved by applying the observed tax-transfers systems to two sets of pooled years of HES data (1988-1991 and 2011-2013), and then constructing appropriate concentration coefficients to analyse how the tax system transformed pre-tax and transfer family income into disposable family income. Such a decomposition allows us to discuss how the observed changes could be consistent with a change in perceptions of what is fair (eg the importance of treating equals the same vs the importance of redistributing income).en_NZ
dc.formatpdfen_NZ
dc.identifier.urihttps://ir.wgtn.ac.nz/handle/123456789/20838
dc.language.isoen_NZ
dc.publisherTe Herenga Waka—Victoria University of Wellingtonen_NZ
dc.relation.ispartofseriesWorking Papers in Public Finance ; 1/2018en_NZ
dc.rights.rightsholderwww.victoria.ac.nz/sacl/about/cpfen_NZ
dc.subjectNew Zealanden_NZ
dc.subjectTaxationen_NZ
dc.subjectWelfare systemen_NZ
dc.titleHorizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013en_NZ
dc.typeTexten_NZ
vuwschema.contributor.unitSchool of Accounting and Commercial Lawen_NZ
vuwschema.subject.anzsrcfor140215 Public Economics - Taxation and Revenueen_NZ
vuwschema.subject.anzsrcforV2380115 Public economics - taxation and revenueen_NZ
vuwschema.type.vuwWorking or Occasional Paperen_NZ

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