ON EQUITY ASPECTS OF IMPERFECT INCOME-REDISTRIBUTION

We develop a theoretical analysis of the impact of imperfect targeting , participation costs and incomplete take-up upon the level of progres sivity, vertical equity, horizontal inequity and redistribution exerte d by state benefits. An illustration using the distribution of British Supplementary Benefits (now Income Support) indicates that progressiv ity is roughly untouched, vertical equity and horizontal inequity are increased, and total income redistribution is slightly increased by th ese redistributive imperfections in 1985 Britain.