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Inequality and Redistribution via the Public Provision of Private GoodsMargarita KatsimiAthens University of Economics and Business - Department of International and European Economic Studies; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Thomas MoutosAthens University of Economics and Business - Department of International and European Economic Studies; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) January 2004 CESifo Working Paper Series No. 1121 Abstract: The relationship between inequality and redistribution is usually studied under the assumption that the government collects different amounts of taxes from each citizen (voter) but gives back the same amount (in cash or in kind) to everyone. In this paper we consider what happens if the government can redistribute through both sides of its budget (revenue and expenditure). We show that inequality may have no discernible effect on the size of redistributive programs.
Number of Pages in PDF File: 16 Keywords: redistribution, inequality, public goods, median voter. JEL Classification: H23, H42, P16 working papers seriesDate posted: March 5, 2004Suggested CitationContact Information
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