This paper posits a measure for determining the progressivity/regressivity of
the combined tax and transfer system in a time dimension. It also shows that a
progressive tax or transfer is stabilizing to family income while a regressive one
is destabilizing. Using data from the Michigan Panel Study of Income Dynamics, the authors analyze the effects of public policy by income and
demographic grouping. Quantitative estimates are also made for select tax and
transfer programs.
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