The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach
12 Pages Posted: 2 Dec 1999
Date Written: 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.
JEL Classification: H23, D30, H41
Suggested Citation: Suggested Citation