Abstract |
This paper has an empirical implementation of Consumption Dominance (CD) curves to determine whether indirect tax reforms can achieve the goal of poverty reduction in a stochastic dominance framework. The advantage of CD-Curves analysis of reforms only needs to censor to poverty indices and poverty lines instead of depending on the social evaluation functions, which is proved in Makdissi and Wodon (2002) and further developed by Duclos, Makdissi and Wodon (2008). Moreover, the robustness of estimating the effects of marginal tax reforms can extend to a wide class of poverty measures, which means that the ethical poverty-improving judgment can ’ be made at unlimited order of stochastic dominance. I will empirically demonstrating the strong points of CD test with the data from the 2003-2004 survey in Syria. |