Direct Taxation, Transfers and Reranking: Some Empirical Results for the UK.

The extent of reranking produced by state cash transfers and direct tax in the United Kingdom is examined using Family Expenditure Survey microdata. In addition to the FES cu rrent weekly income concept, estimates developed of annual income are also used. For annual incomes, the reranking produced appears somewh at less than for current incomes. When household incomes are adjusted for differences in size/composition, the extent of reranking appears greater rather than less. While a significant number of households a re reranked by direct tax, not very many are shifted by more than one decline in ranking. Copyright 1987 by Blackwell Publishing Ltd