Compute the progressivity

progressivity(income, tax, measure = c("Reynolds-Smolensky", "Kakwani"))

Arguments

income

Pre-tax income.

tax

Tax paid.

measure

Currently, only "Reynolds-Smolensky" progressivity is calculated: $$G_Y - G_Z$$ where \(G_Y\) is the Gini coefficient of income and \(G_X\) is the Gini coefficient of post-tax income.

Value

The progressivity measure. Positive for progressive tax systems, and higher the value the more progressive the system.

Examples

I <- c(10e3, 20e3, 50e3, 100e3, 150e3) progressivity(I, 0.3 * I) # zero
#> [1] 0
progressivity(I, income_tax(I, "2017-18"))
#> [1] 0.04856361