Choice Freedom and Redistribution Policies
University of Siena Quaderni del Dipartimento di Economia Politica Working Paper No. 384
12 Pages Posted: 13 Sep 2003
Date Written: May 2003
Opportunity sets are defined by taking account of budgetary, institutional and legal constraints. Then a cardinal measure of freedom is proposed which is apt to interpersonal comparisons of opportunity sets. Individual choice freedom may expand when a new good is publicly provided free or at a low price. On the other hand it is decreased by taxes. It is argued that progressive taxation redistributes freedom in favour of the poor, all the more so when public revenues are used to finance the public provision of goods, in which case overall freedom may result enlarged.
Keywords: Freedom, opportunity sets, public goods, progressive taxation
JEL Classification: D63, D71
Suggested Citation: Suggested Citation