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Income Inequality and the Accounting Period in New Zealand: Evidence from Administrative Data

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  • Alinaghi, Nazila
  • Creedy, John
  • Gemmell, Norman

Abstract

This paper examines the effect on taxable income inequality among New Zealand individuals of extending the accounting period beyond a single year. Typically, inequality comparisons are based on a single year accounting period and involve cross-sectional measures, ignoring the role of income dynamics. The paper uses a specially constructed dataset of the New Zealand taxpayer population since 2000. Results are reported for the population as a whole and for groups distinguished by age, gender, ethnicity and educational qualifications.

Suggested Citation

  • Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2022. "Income Inequality and the Accounting Period in New Zealand: Evidence from Administrative Data," Working Paper Series 21899, Victoria University of Wellington, Chair in Public Finance.
    • Handle: RePEc:vuw:vuwcpf:21899
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    File URL: https://ir.wgtn.ac.nz/handle/123456789/21899
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    References listed on IDEAS

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    1. Creedy, John, 2019. "The Atkinson Inequality Measure and Inequality Aversion," Working Paper Series 8015, Victoria University of Wellington, Chair in Public Finance.
    2. John Creedy, 2016. "Interpreting inequality measures and changes in inequality," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(2), pages 177-192, August.
    3. Trinh Le & John Gibson & Les Oxley, 2006. "A Forward‐Looking Measure Of The Stock Of Human Capital In New Zealand," Manchester School, University of Manchester, vol. 74(5), pages 593-609, September.
    4. Christopher Ball & John Creedy, 2016. "Inequality in New Zealand 1983/84 to 2012/13," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(3), pages 323-342, September.
    5. John Creedy, 2017. "Alternative Distributions for Inequality Comparisons," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(4), pages 484-497, December.
    6. John Creedy & Norman Gemmell, 2018. "Income Dynamics, Pro‐Poor Mobility and Poverty Persistence Curves," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 316-328, September.
    7. Creedy, J, 1996. "Income Dynamics Over the Life Cycle: New Evidence for New Zealand," Department of Economics - Working Papers Series 511, The University of Melbourne.
    8. John Creedy & Norman Gemmell, 2019. "Illustrating income mobility: new measures," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 733-755.
    9. John Creedy & Cath Sleeman, 2005. "Adult equivalence scales, inequality and poverty," New Zealand Economic Papers, Taylor & Francis Journals, vol. 39(1), pages 51-81.
    10. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    11. John Creedy & Norman Gemmell & Athene Laws, 2021. "Relative income dynamics of individuals in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 55(2), pages 203-220, May.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Income inequality; Accounting period; Gini coefficient; Atkinson Index; New Zealand;
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