Inequality-minimization with a given public budget

Arbeitspapier

We solve the problem of a social planner who seeks to minimize inequality via transfers with a fixed public budget in a distribution of exogenously given incomes. The appropriate solution method depends on the objective function: If it is convex, as in the case of the absolute mean deviation, it can be solved by an interior-point algorithm. If it is quasiconvex, as in case of the Gini coefficient, the bisection method can be used. We implement the procedures using artificial and real-world data, and show that the optimal transfer scheme need not comply with a transfer scheme that perfectly equalizes incomes at the bottom of the distribution.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Diskussionsbeiträge ; No. 2016/16

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Optimization Techniques; Programming Models; Dynamic Analysis ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; National Government Expenditures and Welfare Programs ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
• Thema: redistribution ; public transfers ; inequality ; optimization methods ; interior-point algorithm ; bisection method

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): König, Johannes ; Schröder, Carsten
• Ereignis: Veröffentlichung
• (wer): Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
• (wo): Berlin
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/144560
• Letzte Aktualisierung: 20.09.2024, 08:22 MESZ