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The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach
Author(s) -
Thum Claudio,
Weichenrieder Alfons J.
Publication year - 2000
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/1467-9442.00224
Subject(s) - redistribution (election) , veil of ignorance , ignorance , economics , public good , ex ante , public economics , redistribution of income and wealth , microeconomics , actuarial science , macroeconomics , law , political science , economic justice , politics
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 : H 23; D 30;, H 41