Self-Selection and Optimal In-Kind Transfers
With in-kind transfer self-selection schemes, agents choose between a set level of public provision or buy freely from the private market. Housing, education, and healthcare are often of this form. The optimal design of these schemes is analyzed here. It is shown that when a charge can be levied for the transfer, an optimal scheme will nearly always raise welfare, while freely provided transfers are unlikely to improve upon optimal linear taxation alone. Surprisingly, optimal schemes may involve high or medium income agents receiving public expenditure, while those on the lowest incomes opt out. Copyright 1992 by Royal Economic Society.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Apr 1990|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0)1786 467473
Fax: +44 (0)1786 467469
Web page: http://www.econ.stir.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:stl:stlewp:90/3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liam Delaney)
If references are entirely missing, you can add them using this form.