
doi: 10.2139/ssrn.961147
The proposed paper provides trial estimates for particular indices of household factor income redistribution as a result of the bidirectional intervention of direct taxes and social transfers in Bulgaria for year 2003. Musgrave-Thin, Reynolds-Smolensky, Kakwani and Atkinson-Plotnik indices along with the average effective tax and benefit rates are estimated on the basis of decile distributions of pre-tax-benefit (factor) income, direct taxes and compulsory social security contributions, social benefits, and post-tax-benefit income. In this respect, the shifts in concentration curves as well as the degrees of progression of personal income taxes and social transfers are evaluated. Despite that a range of measurement problems do exist and are highly likely to cause biases of different nature, the results obtained provide feasible insights on the overall distributional impact of direct state intervention on household members incomes showing that it significantly reduces the degree of income inequality in much higher extent via social transfers than through income taxation.
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