01712cam a22002297 4500001000600000003000500006005001700011008004100028100002000069245013000089260006600219490004100285500001600326520078000342530006101122538007201183538003601255710004201291830007601333856003701409856003601446w0468NBER20160725144426.0160725s1980 mau||||fs|||| 000 0 eng d1 aKing, Mervyn A.13aAn Index of Inequalityh[electronic resource]:bWith Applications to Horizontal Equity and Social Mobility /cMervyn A. King. aCambridge, Mass.bNational Bureau of Economic Researchc1980.1 aNBER working paper seriesvno. w0468 aApril 1980.3 aAn index of Inequality is constructed which decomposes into two components, corresponding to vertical and "horizontal" equity respectively. Horizontal equity Is defined in terms of changes in the ordering of a distribution. The proposed index is a function to two inequality aversion parameters. One empirical application is for comparison of a pre-tax distribution with a post-tax distribution, and an example of this is given for the distribution of incomes in the UK in 1977. There is a trade-off between "horizontal"and vertical equity, and for particular combinations of the inequality aversion parameters the original distribution will be preferred to the final distribution. The paper concludes with an application of the proposed index to a model of optimal taxation. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w0468.4 uhttp://www.nber.org/papers/w046841uhttp://dx.doi.org/10.3386/w0468