The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach

12 Pages Posted: 2 Dec 1999

See all articles by Claudio Thum

Claudio Thum

University of Munich, CES; CESifo (Center for Economic Studies and Ifo Institute)

Alfons J. Weichenrieder

Goethe University Frankfurt - Department of Applied Econometrics and International Economic Policy; Vienna University of Economics and Business; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 22, 1999

Abstract

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.

JEL Classification: H23, D30, H41

Suggested Citation

Thum, Claudio and Weichenrieder, Alfons J., The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach (November 22, 1999). Available at SSRN: https://ssrn.com/abstract=196248 or http://dx.doi.org/10.2139/ssrn.196248

Claudio Thum (Contact Author)

University of Munich, CES ( email )

Schackstr. 4
Department of Economics
80539 Munich
Germany
49 89 2180 3104 (Phone)
49 89 39 73 03 (Fax)

HOME PAGE: http://www.CESifo.de

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Alfons J. Weichenrieder

Goethe University Frankfurt - Department of Applied Econometrics and International Economic Policy ( email )

United States

HOME PAGE: http://www.uni-frankfurt.de/fb02/weichenrieder/

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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