Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71336
Authors: 
Bargain, Olivier
Year of Publication: 
2009
Series/Report no.: 
Working Paper Series, UCD Centre for Economic Research 09/07
Abstract: 
Using counterfactual microsimulations, Shapley decompositions of time change in inequality and poverty indices make it possible to disentangle and quantify the relative effect of tax-benefit policy changes, compared to all other effects including shifts in the distribution of market income. Using this approach also helps to clarify the different issues underlying the distributional evaluation of policy reforms. An application to the UK (1998-2001) confirms previous findings that inequality and depth of poverty would have increased under the first New Labour government, had important reforms like the extensions of income support and tax credits not been implemented. These reforms have also contributed to substantially reduce poverty among families with children and pensioners.
Subjects: 
Tax-benefit policy
Inequality
Poverty
Shapley decomposition
Microsimulation
JEL: 
H23
H53
I32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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