01865cas a2200241 a 4500 AALejournalIMF000121 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855654 1018-5941 BD-DhAAL BD-DhAAL Lambert, Peter. On the Measurement of Horizontal Inequity / Peter Lambert. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper makes a new attack on the old problem of measuring horizontal inequity in the income tax. Local measures of inequality of posttax income among pretax equals are proposed, which reflect alternative value judgments about the nature and magnitude of an inequity. These measures are aggregated into global indices. The welfare gain from eliminating horizontal inequity revenue-neutrally, and the revenue gain from eliminating it welfare-neutrally, in each case preserving the vertical performance of the tax, are captured by these indices. Difficulties of implementation arising from the 'identification problem' are discussed. A variation in the methodology validates banding the income data to create 'close equals' groups. Simulations show that the banding procedure works well. A range of potentially fruitful applications is discussed. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1995/135 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/135/001.1995.issue-135-en.xml IMF e-Library