Inference tests for tax progressivity and income redistribution: the Suits approach

Arcarons, Jordi; Calonge, Samuel

doi:10.1007/s10888-014-9280-0

Cited by 4 publications

(4 citation statements)

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“…We used ITEP data to calculate a Suits index for each state following methods used in prior studies . The Suits index is a commonly used measure of tax progressivity . Its values range from −1 (a maximally regressive tax) to 1 (a maximally progressive tax), with a Suits index of 0 representing a proportionate tax (neither regressive nor progressive)…”

Section: Methodsmentioning

confidence: 99%

“…37,38 The Suits index is a commonly used measure of tax progressivity. [39][40][41] Its values range from −1 (a maximally regressive tax) to 1 (a maximally progressive tax), with a Suits index of 0 representing a proportionate tax (neither regressive nor progressive). 39 Our selection process for state-level covariates is described in the eMethods in Supplement 1.…”

Section: Study Measuresmentioning

confidence: 99%

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Association of State-Level Tax Policy and Infant Mortality in the United States, 1996-2019

et al. 2023

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ImportanceInfant mortality in the United States is highest among peer nations; it is also inequitable, with the highest rates among Black infants. The association between tax policy and infant mortality is not well understood.ObjectiveTo examine the association between state-level tax policy and state-level infant mortality in the US.Design, Setting, and ParticipantsThis state-level, population-based cross-sectional study investigated the association between tax policy and infant mortality in the US from 1996 through 2019. All US infant births and deaths were included, with data obtained from the National Center for Health Statistics. Data were analyzed from November 28, 2021, to July 9, 2022.ExposuresState-level tax policy was operationalized as tax revenue per capita and tax progressivity. The Suits index was used to measure tax progressivity, with higher progressivity indicating increased tax rates for wealthier individuals.Main Outcomes and MeasuresThe association between tax policy and infant mortality rates was analyzed using a multivariable, negative binomial, generalized estimating equations model. Since 6 years of tax progressivity data were available (1995, 2002, 2009, 2012, 2014, and 2018), 300 state-years were included. Adjusted incidence rate ratios (aIRRs) were calculated controlling for year, state-level demographic variables, federal transfer revenue, and other revenue. Secondary analyses were conducted for racial and ethnic subgroups.ResultsThere were 148 336 infant deaths in the US from 1996 through 2019, including 27 861 Hispanic infants, 1882 non-Hispanic American Indian or Alaska Native infants, 5792 non-Hispanic Asian or Pacific Islander infants, 41 560 non-Hispanic Black infants, and 68 666 non-Hispanic White infants. The overall infant mortality rate was 6.29 deaths per 1000 live births. Each $1000 increase in tax revenue per capita was associated with a 2.6% decrease in the infant mortality rate (aIRR, 0.97; 95% CI, 0.95-0.99). An increase of 0.10 in the Suits index (ie, increased tax progressivity) was associated with a 4.6% decrease in the infant mortality rate (aIRR, 0.95; 95% CI, 0.91-0.99). Increased tax progressivity was associated with decreased non-Hispanic White infant mortality (aIRR, 0.95; 95% CI, 0.91-0.99), and increased tax revenue was associated with increased non-Hispanic Black infant mortality (aIRR, 1.04; 95% CI, 1.01-1.08).Conclusions and RelevanceIn this cross-sectional study, an increase in tax revenue and the Suits index of tax progressivity were both associated with decreased infant mortality. These associations varied by race and ethnicity. Tax policy is an important, modifiable social determinant of health that may influence state-level infant mortality.

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Section: Methodsmentioning

confidence: 99%

Section: Study Measuresmentioning

confidence: 99%

Association of State-Level Tax Policy and Infant Mortality in the United States, 1996-2019

et al. 2023

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“…Let X be a pre-tax income variable and Y be a general variable that in some cases will represent tax or benefit T and in others, the post-tax income, defined as Y = X − T. We suppose that X and Y are non-negative random variables. The Suits index, which is interpreted as an average measure of tax progressivity, is based on the relative concentration curve (RCC) of the Y-variable, which plots its cumulative percentage against the cumulative percentage of pre-tax income X when both variables have been ordered in ascending order of X [34].…”

Section: Measuring Progressivity Of the Taxmentioning

confidence: 99%

Tax Rate of Management Control: The Mexican Income Tax Rates System for Resident and Non-Residents

2021

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The aim of this study is to show the tax rate of management control of the legislation according to the tax residence of the people who obtain income from wages. The questions considered here are: Is the income tax rate applied to national resident workers and to residents abroad proportionally? Under the same circumstances, in both cases do they pay similar amounts? The empirical analysis was based on the evaluation of the income tax and tax rate of management control in Mexico based on the Suits progressivity index. It was found that, under similar conditions, the amount of the tax to be paid by a resident abroad is less than that paid by a national resident.

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“…La estimación de la etapa (2) es una regresión simple entre los residuos y su primer retardo, obtenidos de la etapa (1), lo que permute estimar el parámetro Ø del esquema AR(1) que sigue una perturbación . Por su parte, el método Prais-Winsten se considera una variante del método Cochrane-Orcutt, que conlleva un tratamiento específico de la primera observación de la serie en lugar de eliminarla.La ecuación de la etapa (1) se ampliaría con la nueva observación y el proceso de estimación igual al descrito por Cochrane-Orcutt (Arcarons & Calonge, 2007). correspondientes a la prueba del Multiplicador de Lagrange (LM, por sus siglas en inglés), lo que permitirá rechazar, o no, la hipótesis nula de linealidad Granger, Teräsvirta & Anderson, 1993;Greene, 2012 En ambas ecuaciones, T es el tamaño de la muestra, p es igual al número de rezagos contenidos en el modelo lineal inicial AR(p), SSR0 corresponde a la Suma Cuadrática de los Residuos del modelo AR(p) estimado, en tanto SSR1, corresponde a la Suma Cuadrática de los Residuos de la ecuación auxiliar.…”

Section: Dondeunclassified

Sincronización cíclica del sector manufacturero de méxico y estados unidos desde una perspectiva no lineal autorregresiva con transición suave

Zepeda-Mercado

2015

Rev. fac. cien. econ.

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ResumenEl objetivo de este artículo es validar el modelo Autorregresivo de Transición Suave (STAR) para el análisis de la sincronización cíclica del sector manufacturero de Estados Unidos con México, a partir de la apertura comercial de este último. Para este fin se revisa la bibliografía sobre la metodología STAR y se describen los aportes teóricos y prácticos relacionados con esta. Teóricamente se concluye que debido a su estructura lineal intrínseca, los modelos STAR son capaces de guiar al investigador hacia la elección de la metodología adecuada para modelar el comportamiento real de los datos; además, gracias a su componente no lineal, poseen la capacidad de modelar comportamientos cíclicos asimétricos de las series. Palabras clave: Modelación econométrica; Series de tiempo; Modelos no lineales; Ciclos económicos. MANUFACTURING SECTOR´S CYCLICAL SYNCHRONIZATION OF MEXICO AND THE UNITED STATES FROM AN AUTOREGRESSIVE NONLINEAR PERSPECTIVE INCLUDING SMOOTH TRANSITION AbstractThe aim of this paper is to validate the Smooth Transition Auto Regressive (STAR) model for the analysis of cyclical synchronization of the manufacturing sector in the United States with Mexico, from trade liberalization in the latter. To this end the literature on the STAR methodology is reviewed and theoretical and practical contributions regarding this are described. Theoretically it is concluded that due to its inherent linear structure, the STAR models are able to guide the researcher toward choosing the appropriate methodology to model the real behavior of the data; also thanks to its nonlinear component they have the ability to model asymmetric cyclical behavior of the series.

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Inference tests for tax progressivity and income redistribution: the Suits approach

Cited by 4 publications

References 24 publications

Association of State-Level Tax Policy and Infant Mortality in the United States, 1996-2019

Association of State-Level Tax Policy and Infant Mortality in the United States, 1996-2019

Tax Rate of Management Control: The Mexican Income Tax Rates System for Resident and Non-Residents

Sincronización cíclica del sector manufacturero de méxico y estados unidos desde una perspectiva no lineal autorregresiva con transición suave

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