Methods of testing econometrically for horizontal inequity (HI) induced by tax systems are examined. Both socially homogeneous and heterogeneous income-receiving populations are analysed. The favoured econometric methods are applied to cross-section data in order to determine the magnitude and statistical significance of HI in the UK.

    Authors

    Working Paper details

    DOI
    10.1920/wp.ifs.1997.9718
    Publisher
    IFS

    Suggested citation

    Lambert,, P and Parker, S. (1997). Testing for horizontal inequity econometrically. London: IFS. Available at: https://ifs.org.uk/publications/testing-horizontal-inequity-econometrically (accessed: 28 September 2026).

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