Inequality decompositions:a reconciliation

We show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in the recent literature. We also highlight some pitfalls that arise from uncritical use of the regression approach. The LIS database is used to compare the approaches using an analysis of the changing contributions to inequality in the United States and Finland

Confidence intervals for Kernel density estimation

This article describes asciker and bsciker, two programs that enrich the possibility for density analysis using Stata. asciker and bsciker compute asymptotic and bootstrap confidence intervals for kernel density estimation, respectively, based on the theory of kernel density confidence intervals estimation developed in Hall (1992b) and Horowitz (2001). asciker and bsciker allow several options and are compatible with Stata 7 and Stata 8, using the appropriate graphics engine under both version

Intergenerational persistence of educational attainment in Italy

In this paper we suggest a simple decomposition of the correlation coefficient of education to account for different intergenerational mobility of subgroups of the population, which is of key importance from a policy persepective. Focussing on the interesting Italian case, we show that the high persistence of educational attainment found in the data is due to a much larger probability of obtaining a college degree of children of highly educated father

Consumers’ Attitudes on Services of General Interest in the EU: Accessibility, Price and Quality 2000-2004

The research question addressed by this paper is a simple one: are European consumers happy with the services provided by the utilities after two decades of reforms? We focus on electricity, gas, water, telephone in the EU 15 Member States. The variables we analyse are consumers\u2019 satisfaction with accessibility, price and quality, as reported in three waves of Eurobarometer survey, 2000-2002-2004, comprising around 47,000 observations. We use ordered logit models to analyze the impact of privatization and regulatory reforms, as represented by an OECD dataset, controlling for individual and country characteristics. Our results do not support a clear association between consumers\u2019 satisfaction and a standard reform package of privatization, vertical disintegration, liberalization

Fermi 130 GeV gamma-ray excess and dark matter annihilation in sub-haloes and in the Galactic centre

We analyze publicly available Fermi-LAT high-energy gamma-ray data and confirm the existence of clear spectral feature peaked at E=130GeV. Scanning over the Galaxy we identify several disconnected regions where the observed excess originates from. Our best optimized fit is obtained for the central region of Galaxy with a clear peak at 130GeV with local statistical significance 4.5 sigma. The observed excess is not correlated with Fermi bubbles. We compute the photon spectra induced by dark matter annihilations into two and four standard model particles, the latter via two light intermediate states, and fit the spectra with data. Since our fits indicate sharper and higher signal peak than in the previous works, data favors dark matter direct two-body annihilation channels into photons or other channels giving only line-like spectra. If Einasto halo profile correctly predicts the central cusp of Galaxy, dark matter annihilation cross-section to two photons is of order ten percent of the standard thermal freeze-out cross-section. The large dark matter two-body annihilation cross-section to photons may signal a new resonance that should be searched for at the CERN LHC experiments.Comment: Addendum included on the double peak structure of the excess seen due to new improved Fermi-LAT energy resolutio

Benford's law predicted digit distribution of aggregated income taxes: the surprising conformity of Italian cities and regions

The yearly aggregated tax income data of all, more than 8000, Italian municipalities are analyzed for a period of five years, from 2007 to 2011, to search for conformity or not with Benford's law, a counter-intuitive phenomenon observed in large tabulated data where the occurrence of numbers having smaller initial digits is more favored than those with larger digits. This is done in anticipation that large deviations from Benford's law will be found in view of tax evasion supposedly being widespread across Italy. Contrary to expectations, we show that the overall tax income data for all these years is in excellent agreement with Benford's law. Furthermore, we also analyze the data of Calabria, Campania and Sicily, the three Italian regions known for strong presence of mafia, to see if there are any marked deviations from Benford's law. Again, we find that all yearly data sets for Calabria and Sicily agree with Benford's law whereas only the 2007 and 2008 yearly data show departures from the law for Campania. These results are again surprising in view of underground and illegal nature of economic activities of mafia which significantly contribute to tax evasion. Some hypothesis for the found conformity is presented.Comment: 18 pages, 5 tables, 4 figures, 61 references, To appear in European Physical Journal

“Assessing alternative Irpef reforms using microsimulation methods”

xx

Analysing tax-benefit reforms using non-parametric methods

Static tax-benefit microsimulation models (MSMs) are widely used and well-regarded tools for public policy analysis, but it is essential to use them very carefully. This paper focuses on the analysis of MSM output, suggesting the use of non-parametric methods as a useful, informative and relatively straightforward complement to detect effects not always captured by measures often used to present MSM results. Non-parametric methods are used here to analyse the output of an MSM applied to the 1998 Italian personal income tax reform, the main change in which concerned the tax schedule: the first tax rate was increased from 10 per cent to 18.5 per cent and the top one was reduced by 4.5 percentage points. Non-parametric methods highlight that the effects of this reform were very different for different types of households, with low-income pensioner households among the main losers. Results are checked for robustness by standard statistical methods and compared with empirical results obtainable using quintile histograms