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The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach

Author

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  • Claudio Thum
  • Alfons J. Weichenrieder

Abstract

The “veil of ignorance” approach is used to consider the redistribution implied by different tax‐benefit systems. Assuming a (hypothetical) ex‐ante situation in which individuals lack any knowledge about their future income, redistribution from rich to poor can be seen as a form of insurance. Taking redistribution and insurance as synonymous, the analysis derives cases of redistributionally neutral systems of taxation and public good provision. JEL classification: H23; D30;,H41

Suggested Citation

  • Claudio Thum & Alfons J. Weichenrieder, 2000. "The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(4), pages 737-746, December.
    • Handle: RePEc:bla:scandj:v:102:y:2000:i:4:p:737-746
    DOI: 10.1111/1467-9442.00224
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    Citations

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    Cited by:

    1. Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
    2. Wolfgang Buchholz & Wolfgang Peters, 2007. "Justifying the Lindahl solution as an outcome of fair cooperation," Public Choice, Springer, vol. 133(1), pages 157-169, October.
    3. Gustavo Caballero, "undated". "Information Effect Regarding Inequality of Opportunities on Redistribution: A Lab Experiment," Working Papers 2014-75, Department of Economics, University of Calgary, revised 15 Oct 2014.

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D30 - Microeconomics - - Distribution - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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