tailieunhanh - Optimal taxation policy maximum-entropy approach

The object of this paper is firstly to present entropic measure of income inequality and secondly to develop maximum entropy approaches for the optimal reduction of income inequality through taxation. | Yugoslav Journal of Operations Research 13 (2003), Number 1, 95-105 OPTIMAL TAXATION POLICY MAXIMUM-ENTROPY APPROACH P. JANA, . MAZUMDER Department of Mathematics, Bengal Engineering College (.) Nowrah, West Bengal, India . DAS Department of Mathematics, Taki Govt. College West Bengal, India Abstract: The object of this paper is firstly to present entropic measure of income inequality and secondly to develop maximum entropy approaches for the optimal reduction of income inequality through taxation. Keywords: Income inequality, entropy, optimal taxation. 1. INTRODUCTION Differences between individuals or between groups of individuals are not only normal but also unavoidable phenomena in the biological world. But only within the human species do we find from the down of history, inequalities of a different nature social inequalities, which has little to do with the biological differences [4]. Social conflicts of all times have hinged on economic inequality between social classes and this social difference singles out the human species from others. Thus there are different economic inequalities - income inequalities among individuals of a population, wealth inequalities between developed and developing countries, concentration of industry in the hands of a few individual companies etc. There are different economic programmes aimed at removing economic inequalities between social structures. Economic models of taxation, subsidies, income transfer and financial aids etc. are some of the means adopted to reduce the social inequalities . to reduce the difference between the rich and the poor. Attempts to introduce quantitative measures of inequality of income or of wealth had started early in this century. In order to evaluate proposed measures it becomes desirable to determine how income or wealth distribution might be compared 96 P. Jana, ., Mazumder, . Das / Optimal Taxation Policy in order to say that one distribution was 'more equal' than .

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