The purpose of this article is to estimate the redistributive effects of personal income tax (PIT) in Slovenia and Croatia. The decomposition of the Gini coefficient developed by Aronson, Johnson & Lambert reveals only a limited difference between potential and actual redistribution, with this...

This paper raises the issue whether public policy should focus on minimizing unhappiness rather than maximizing happiness. Using a cross-sectional multi-country dataset with 57,000 observations from 29 European countries, we show that unhappiness varies a great deal more across social groups...

Recent success of the flat income tax in Eastern Europe raises questions about whether there is scope for such a policy reform in Western Europe as well. We address this by estimating the potential distributional impact of various flat taxes for selected Western European countries. Our...