Productivity and Inequality by unknow
Author:unknow
Language: eng
Format: epub, pdf
Publisher: Springer International Publishing, Cham
(18)
where , and represent respectively the expected income or transfer from source i, the variance of transfers from that source and the covariance between transfers from that source and other sources of incomes for a household with expected income μ and income security ξ.
The impact on of a marginal policy reform that reduces transfers from income source k and increases transfers from income source l is
(19)
The impact of the reform on the government budget B is
(20)
Under budget neutrality, dB = 0. Following Duclos et al. (2005a), we define the economic efficiency ratio for the reform, γ, as
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