2017
DOI: 10.5202/rei.v8i1.205
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Remittances, Lorenz Dominance in the Distribution of Income and Redistribution

Abstract: Abstract:We analyze how changes in the distribution of income, characterized by the comparison of Lorenz curves, affect public redistribution for an economy with international interfamily transfers (remittances). Our analysis suggests that a fall in the inequality of income might increase or reduce the government's ability to collect tax revenue and its electoral costs from inefficient taxation which in turn affect public redistribution. The main contribution of this paper is to characterize conditions in whic… Show more

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