The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach
University of Munich, CES; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Alfons J. Weichenrieder
University of Frankfurt - Chair of Public Finance; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Vienna University of Economics and Business Administration
November 22, 1999
This paper considers the redistribution implied by different tax-benefit systems by using the 'veil of ignorance' approach. Redistribution from rich to poor is interpreted as an insurance from a (hypothetical) ex ante situation in which individuals lack any knowledge about their future income situation. Taking redistribution and insurance as synonymous, the paper derives cases of redistributionally neutral systems of taxation and public good provision.
Number of Pages in PDF File: 12
JEL Classification: H23, D30, H41working papers series
Date posted: December 2, 1999
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