Systems of taxation

This is why development people focus on poverty and

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Unformatted text preview: fferent people are without looking at currencies: easier to interpret and compare Think about what timeframe Why consumption would be preferred than income? Easier to get accurate information about People who grow their own food is hard to find out what their income is. This is why development people focus on poverty and not inequality anymore These surveys come from: International Organizations: World bank, etc. Important they do it because they use a similar questionnaire all over the world Measure inequality using same factors. As you go from left to right, the quality of data falls (rich people don’t like to answer questions on income and consumption) Some commonly used measures of inequality: Range Difference between richest and poorest person (divided by the mean) (Ymax – Ymin)/Ymean anonymity applies, population applies, relative income depends if it applies, Dalton does not apply (insensitive to middle numbers) Kuznets ratio: Satisfies anonymity, population, relative income, but not Dalton (since percentage is arbitr...
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This document was uploaded on 03/28/2014 for the course INAF 252 at Georgetown.

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