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Dominance Testing Of Transfers In Romania

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  • David E. Sahn
  • Stephen D. Younger
  • Kenneth R. Simler

Abstract

In this paper we compare the progressivity of different government transfers made to households in Romania. We use distribution free standard errors to examine the difference between concentration curves that may be correlated, and thereafter employ statistical tests that take into account the covariance matrix for the ordinate estimates. In addition, we estimate extended Gini coefficients for the same transfers to check their consistency with the tests of inequality dominance. The results show that almost all transfer payments in Romania are progressive, and that they have an important effect on the distribution of income. Rankings among different transfer payments are, however, not robust. In particular, sensitivity analysis using different household equivalence scales indicates that many results are not consistent across scales, and that lower size elasticities contribute to changes in ranking of Ginis and loss of statistical significance in dominance tests.

Suggested Citation

  • David E. Sahn & Stephen D. Younger & Kenneth R. Simler, 2000. "Dominance Testing Of Transfers In Romania," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 309-327, September.
    • Handle: RePEc:bla:revinw:v:46:y:2000:i:3:p:309-327
    DOI: 10.1111/j.1475-4991.2000.tb00845.x
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    Cited by:

    1. Rasmus Heltberg & Kenneth Simler & Finn Tarp, 2001. "Public Spending and Poverty in Mozambique," WIDER Working Paper Series DP2001-63, World Institute for Development Economic Research (UNU-WIDER).
    2. Arnaud Lefranc & Nicolas Pistolesi & Alain Trannoy, 2008. "Inequality Of Opportunities Vs. Inequality Of Outcomes: Are Western Societies All Alike?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 513-546, December.
    3. Irac, D. & Minoiu, C., 2006. "Risk Insurance in a Transition Economy: Evidence from Rural Romania," Working papers 154, Banque de France.
    4. Liu Baihui, 2017. "Redistributive Effect of Taxes and Transfers: Evidence from China," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 3(1), pages 43-51.
    5. Aristei, David & Perugini, Cristiano, 2012. "Inequality and reforms in transition countries," Economic Systems, Elsevier, vol. 36(1), pages 2-10.

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