ADMN 3400H Lecture Notes - Lecture 8: Gini Coefficient, Progressive Tax, Maximal Function
30 Mar 2020
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Document Summary
Measurement of wealth and measurement of distribution of wealth. Wealth of a country: gdp per capita (or median individual or household income) Effect of unequal distribution of income or wealth. Decrease in social connectedness and community involvement. Affects the shape of men"s faces that women find attractive. Proportional: flat rate that takes a constant proportion of income, can be considered regressive. Regressive: a declining share of tax as income rises, e. g. , sales tax, consumption items that tend to claim a larger proportion of wealthy income than poor, e. g. , social security. Progressive: an increasing share of income from higher income brackets, 10% on income , 28% up to ,000, 35% above certain amount. Favour levies on consumption or other activities that will not distort individual"s decision to work or save: state should provide national defense, educate citizens, administer justice, pay for public works etc
