The Distributional Consequences Of Government Spending And Taxation In The U.S., 1989 And 2000
We assess the effects of government expenditures and taxation on household economic well-being in the United States in 1989 and 2000. Net government expenditure is estimated as the difference between government expenditures incurred on behalf of the household sector-transfers and public consumption-and the taxes paid by that sector. We incorporate the estimates of net government expenditures into a wealth-adjusted measure of income. We find that overall inequality in our income measure is considerably reduced by net government expenditures. Results from decomposition analysis show that the inequality-reducing effect of net government expenditures owed more to expenditures than to taxes. Copyright © 2007 The Authors; Journal compilation © International Association for Research in Income and Wealth 2007.
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Volume (Year): 53 (2007)
Issue (Month): 4 (December)
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