The SkyShares model enables policy-makers to explore a range of different emissions policy scenarios. This paper uses the SkyShares model to explore one such scenario in detail.
In this paper we explore the Palma and corroborate the findings that the middle does indeed hold over time and through various stages of tax and transfers. Further, we find that the Gini is almost completely “explained” by only two points of the distribution: the same income shares which determine the Palma.
This paper provides the background to a series of more detailed studies of the policies of European countries as they relate to CGD's Commitment to Development Index.