Author Affiliation, Ana.
Department of Economics
Guiding marginal tax policy changes using the extended gini index of consumption inequality
Date of Publication
Examines the distribution of expenditure, excluding home produced food and gifts for 2002, utilizing the Jamaica Survey of Living Conditions. It employs the methodology of Lerman and Yitzhaki to disaggregate consumption expenditure by broad expenditure groups and to estimate the elasticities of expenditure. The results suggest that the elasticities for meals away from home, transportation, education, and recreation, housing and household expenses were elastic. This implies that imposing taxes on such goods would reduce the inequality in expenditure, as such taxes will be progressive. On the other hand, imposing additional taxes on food and beverages, personal care, fuel and household supplies, health care, and clothing and footwear would increase expendture inequality, since they will be regressive.....