Equity, or economic equality, is the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics. More specifically, it may refer to a movement that strives to provide equal life chances regardless of identity, to provide all citizens with a basic and equal minimum of income, goods, and services or to increase funds and commitment for redistribution.[citation needed]
Scheme of sustainable development: at the confluence of three constituent parts. (2006)
According to Peter Corning, there are three distinct categories of substantive fairness (equality, equity, and reciprocity) that must be combined and balanced in order to achieve a truly fair society. [1] Inequality and inequities have significantly increased in recent decades[2][citation needed].
Equity is based on the idea of moral equality.[citation needed] Equity looks at the distribution of capital, goods, and access to services throughout an economy and is often measured using tools such as the Gini index. Equity may be distinguished from economic efficiency in overall evaluation of social welfare. Although 'equity' has broader uses, it may be posed as a counterpart to economic inequality in yielding a "good" distribution of wealth. It has been studied in experimental economics as inequity aversion.
Taxationedit
In public finance, horizontal equity is the idea that people with a similar ability to pay taxes should pay the same or similar amounts. It is related to the concept of tax neutrality or the idea that the tax system should not discriminate between similar things or people, or unduly distort behavior.[3]
Vertical equity usually refers to the idea that people with a greater ability to pay taxes should pay more. If the rich pay more in proportion to their income, this is known as a proportional tax; if they pay an increasing proportion, this is termed a progressive tax, sometimes associated with redistribution of wealth.[4]
Fair divisionedit
Equitability in fair division means every person’s subjective valuation of their own share of some goods is the same. The surplus procedure (SP) achieves a more complex variant called proportional equitability. For more than two people, a division cannot always both be equitable and envy-free.[5]
^"Social Justice: Is It in Our Nature (and Our Future)?". American Scientist. 2017-02-06. Retrieved 2023-03-26.
^Musgrave (1987), pp. 1057–58. See. Burgers, Irene JJ, and I. J. Valderrama. "Fairness: A dire international tax standard with no meaning." Intertax 45 (2017): 767.
^Better Ways to Cut a Cake by Steven J. Brams, Michael A. Jones, and Christian Klamler in the Notices of the American Mathematical Society December 2006.
Xavier Calsamiglia and Alan Kirman (1993). "A Unique Informationally Efficient and Decentralized Mechanism with Fair Outcomes," Econometrica, 61(5), p p. 1147-1172.
A.J. Culyer (1995). "Need: The Idea Won't Do — But We Still Need It," Social Science and Medicine, 40(6), pp. 727–730.
World Bank. World Development Report 2006: Equity and Development.Summary with ch. links.
H. Peyton Young (1994). Equity: In Theory and Practice. Princeton University Press. Description, preview, and chapter 1[permanent dead link].
Colombino, U., Locatelli, M., Narazani, E., & O'Donoghue, C. (2010). Alternative basic income mechanisms: An evaluation exercise with a microeconometric model. Basic Income Studies, 5(1).
December 18, 2023
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Equity economics news newspapers books scholar JSTOR October 2022 Learn how and when to remove this template message Equity or economic equality is the concept or idea of fairness in economics particularly in regard to taxation or welfare economics More specifically it may refer to a movement that strives to provide equal life chances regardless of identity to provide all citizens with a basic and equal minimum of income goods and services or to increase funds and commitment for redistribution citation needed Scheme of sustainable development at the confluence of three constituent parts 2006 Contents 1 Overview 2 Taxation 3 Fair division 4 See also 5 Notes 6 ReferencesOverview editAccording to Peter Corning there are three distinct categories of substantive fairness equality equity and reciprocity that must be combined and balanced in order to achieve a truly fair society 1 Inequality and inequities have significantly increased in recent decades 2 citation needed Equity is based on the idea of moral equality citation needed Equity looks at the distribution of capital goods and access to services throughout an economy and is often measured using tools such as the Gini index Equity may be distinguished from economic efficiency in overall evaluation of social welfare Although equity has broader uses it may be posed as a counterpart to economic inequality in yielding a good distribution of wealth It has been studied in experimental economics as inequity aversion Taxation editIn public finance horizontal equity is the idea that people with a similar ability to pay taxes should pay the same or similar amounts It is related to the concept of tax neutrality or the idea that the tax system should not discriminate between similar things or people or unduly distort behavior 3 Vertical equity usually refers to the idea that people with a greater ability to pay taxes should pay more If the rich pay more in proportion to their income this is known as a proportional tax if they pay an increasing proportion this is termed a progressive tax sometimes associated with redistribution of wealth 4 Fair division editEquitability in fair division means every person s subjective valuation of their own share of some goods is the same The surplus procedure SP achieves a more complex variant called proportional equitability For more than two people a division cannot always both be equitable and envy free 5 See also editDistributive justice Educational equity Equity law Excess burden of taxation Justice economics Progressive tax Proportional tax Tax incidenceNotes edit Is Capitalism Fair Psychology Today Social Justice Is It in Our Nature and Our Future American Scientist 2017 02 06 Retrieved 2023 03 26 Musgrave 1987 pp 1057 58 See Burgers Irene JJ and I J Valderrama Fairness A dire international tax standard with no meaning Intertax 45 2017 767 Musgrave 1959 p 20 Better Ways to Cut a Cake by Steven J Brams Michael A Jones and Christian Klamler in the Notices of the American Mathematical Society December 2006 References editAnthony B Atkinson and Joseph E Stiglitz 1980 Lectures in Public Economics McGraw Hill Economics Handbook Series Xavier Calsamiglia and Alan Kirman 1993 A Unique Informationally Efficient and Decentralized Mechanism with Fair Outcomes Econometrica 61 5 p p 1147 1172 A J Culyer 1995 Need The Idea Won t Do But We Still Need It Social Science and Medicine 40 6 pp 727 730 Jean Yves Duclos 2008 horizontal and vertical equity The New Palgrave Dictionary of Economics 2nd Edition Abstract Allan M Feldman 1987 equity The New Palgrave A Dictionary of Economics v 2 pp 182 84 Peter J Hammond 1987 altruism The New Palgrave A Dictionary of Economics v 1 pp 85 87 Serge Christophe Kolm 1972 2000 Justice and Equity Description amp chapter preview links MIT Press Julian Le Grand 1991 Equity and Choice An Essay in Economics and Applied Philosophy Chapter preview links Richard A Musgrave 1959 The Theory of Public Finance A Study in Political Economy 1987 2008 public finance The New Palgrave A Dictionary of Economics v 3 pp 1055 60 Abstract Richard A Musgrave and Peggy B Musgrave 1973 Public Finance in Theory and Practice Joseph E Stiglitz 2000 Economics of the Public Sector 3rd ed Norton William Thomson 2008 fair allocation The New Palgrave Dictionary of Economics 2nd Edition Abstract World Bank World Development Report 2006 Equity and Development Summary with ch links H Peyton Young 1994 Equity In Theory and Practice Princeton University Press Description preview and chapter 1 permanent dead link Colombino U Locatelli M Narazani E amp O Donoghue C 2010 Alternative basic income mechanisms An evaluation exercise with a microeconometric model Basic Income Studies 5 1 Retrieved from https en wikipedia org w index php title Equity economics amp 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