IDEAS home Printed from https://ideas.repec.org/a/col/000151/003513.html
   My bibliography  Save this article

Social security, income taxation and poverty alleviation

Author

Listed:
  • Darío Maldonado

Abstract

In this paper I consider the normative arguments that justify a public social security system as a redistributive device when goverment is concerned with individual utility and poverty. Redistribution can be done using social security, income taxation or both. The main objective of this paper is to show how the consideration of a planner that cares about poverty and utility increases the desirability of social with respect to the case when the planner only cares about utility.

Suggested Citation

  • Darío Maldonado, 2006. "Social security, income taxation and poverty alleviation," Revista de Economía del Rosario, Universidad del Rosario, June.
  • Handle: RePEc:col:000151:003513
    as

    Download full text from publisher

    File URL: http://revistas.urosario.edu.co/index.php/economia/article/view/1104/998
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Optimal non-linear income taxation for the alleviation of income-poverty," European Economic Review, Elsevier, vol. 38(8), pages 1613-1632, October.
    2. Morduch, Jonathan, 1994. "Poverty and Vulnerability," American Economic Review, American Economic Association, vol. 84(2), pages 221-225, May.
    3. Wane, Waly, 2001. "The optimal income tax when poverty is a public 'bad'," Journal of Public Economics, Elsevier, vol. 82(2), pages 271-299, November.
    4. Stiglitz, Joseph E., 1987. "Pareto efficient and optimal taxation and the new new welfare economics," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 15, pages 991-1042, Elsevier.
    5. Helmuth Cremer & Pierre Pestieau, 1996. "Redistributive taxation and social insurance," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 281-295, July.
    6. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    7. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    8. Dominique Henriet & Jean-Charles Rochet, 2006. "Is public health insurance an appropriate instrument for redistribution?," Annals of Economics and Statistics, GENES, issue 83-84, pages 61-88.
    9. François BOURGUIGNON & Gary S. FIELDS, 1990. "Poverty Measures and Anti-Poverty Policy," Discussion Papers (REL - Recherches Economiques de Louvain) 1990038, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    10. Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-169, July.
    11. Blomqvist, Ake & Horn, Henrik, 1984. "Public health insurance and optimal income taxation," Journal of Public Economics, Elsevier, vol. 24(3), pages 353-371, August.
    12. Amartya Sen, 1999. "The Possibility of Social Choice," American Economic Review, American Economic Association, vol. 89(3), pages 349-378, June.
    13. Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
    14. Jean-Charles Rochet, 1991. "Incentives, Redistribution and Social Insurance," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 16(2), pages 143-165, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stéphanie Maillot-Bugnon, 2005. "Assurance maladie et redistribution : le cas de l'arrêt maladie," Recherches économiques de Louvain, De Boeck Université, vol. 71(4), pages 427-443.
    2. Giacomo Valletta, 2014. "Health, fairness and taxation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 101-140, June.
    3. Friedrich Breyer & Andreas Haufler, 2000. "Health Care Reform: Separating Insurance from Income Redistribution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(4), pages 445-461, August.
    4. Marc Fleurbaey & Giacomo Valletta, 2018. "Fair optimal tax with endogenous productivities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 849-873, December.
    5. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.
    6. Billy Jack, 2003. "Redistributing to the sick: How should health expenditures be integrated into the tax system?," Working Papers gueconwpa~03-03-16, Georgetown University, Department of Economics.
    7. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-383, June.
    8. VALLETTA, Giacomo, 2012. "Health, fairness and taxation," LIDAM Discussion Papers CORE 2012016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Sreenivasan Subramanian, 2004. "Indicators of Inequality and Poverty," WIDER Working Paper Series RP2004-25, World Institute for Development Economic Research (UNU-WIDER).
    10. Valletta, G., 2012. "Health, fairness and taxation," Research Memorandum 017, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    11. Lombardo, Vincenzo, 2008. "Poor’s behaviour and inequality traps: the role of human capital," MPRA Paper 14511, University Library of Munich, Germany.
    12. Vincenzo Lombardo, 2008. "Poor's behaviour and inequality traps: the role of human capital," Working Papers 10_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    13. Dominique Henriet, 2004. "Assurance maladie : intervention publique et rôle de la concurrence," Revue d'économie politique, Dalloz, vol. 114(5), pages 587-594.
    14. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    15. De Donder, Philippe & Hindriks, Jean, 2007. "Equilibrium social insurance with policy-motivated parties," European Journal of Political Economy, Elsevier, vol. 23(3), pages 624-640, September.
    16. Constantine Angyridis & Brennan Scott Thompson, 2016. "Negative income taxes, inequality and poverty," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 1016-1034, August.
    17. Louis Kaplow, 2020. "A Unified Perspective on Efficiency, Redistribution, and Public Policy," NBER Working Papers 26683, National Bureau of Economic Research, Inc.
    18. Mathias Kifmann, 2005. "Health insurance in a democracy: Why is it public and why are premiums income related?," Public Choice, Springer, vol. 124(3), pages 283-308, September.
    19. Justina Klimaviciute & Pierre Pestieau, 2018. "Long-term care social insurance: How to avoid big losses?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(1), pages 99-139, February.
    20. Paweł Doligalski & Abdoulaye Ndiaye & Nicolas Werquin, 2023. "Redistribution with Performance Pay," Journal of Political Economy Macroeconomics, University of Chicago Press, vol. 1(2), pages 371-402.

    More about this item

    Keywords

    Welfarism; poverty; income taxation; social security;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000151:003513. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Facultad de Economía (email available below). General contact details of provider: https://edirc.repec.org/data/ferosco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.