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Pareto-improving income redistribution: expanding consumer access to the vaccines market

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  • Pedro Garcia-del-Barrio

    (Universitat Internacional de Catalunya)

Abstract

Economic theory has proved that income redistribution in imperfectly competitive markets can increase social welfare and lead to Pareto-improving situations. This paper shows that, under certain assumptions, self-financing tax subsidy schemes can have Pareto-improving effects also in a competitive framework. This result is achieved by exploiting external economies of scale, resulting in a decrease in price along with an increase in output. The case of the vaccines industry and World Health Organization initiatives are examined to illustrate the theoretical analysis.

Suggested Citation

  • Pedro Garcia-del-Barrio, 2017. "Pareto-improving income redistribution: expanding consumer access to the vaccines market," Economics of Governance, Springer, vol. 18(3), pages 275-313, August.
    • Handle: RePEc:spr:ecogov:v:18:y:2017:i:3:d:10.1007_s10101-017-0190-z
    DOI: 10.1007/s10101-017-0190-z
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    More about this item

    Keywords

    External economies of scale; Income transfer redistribution; Pareto-improving tax-subsidies; Vaccines industry;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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