The distributional impact of public goods provision: A veil of ignorance approach

Citation
C. Thum et Aj. Weichenrieder, The distributional impact of public goods provision: A veil of ignorance approach, SC J ECON, 102(4), 2000, pp. 737-746
Citations number
14
Categorie Soggetti
Economics
Journal title
SCANDINAVIAN JOURNAL OF ECONOMICS
ISSN journal
03470520 → ACNP
Volume
102
Issue
4
Year of publication
2000
Pages
737 - 746
Database
ISI
SICI code
0347-0520(2000)102:4<737:TDIOPG>2.0.ZU;2-K
Abstract
The "veil of ignorance" approach is used to consider the redistribution imp lied by different tax-benefit systems. Assuming a (hypothetical) ex-ante si tuation in which individuals lack any knowledge about their future income, redistribution from rich to poor can be seen as a form of insurance. Taking redistribution and insurance as synonymous, the analysis derives cases of redistributionally neutral systems of taxation and public good provision.