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TAXATION, SOCIAL GOODS AND THE DISTRIBUTION OF FREEDOM
Author(s) -
Screpanti Ernesto
Publication year - 2006
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2006.00230.x
Subject(s) - comparative statics , economics , public good , degrees of freedom (physics and chemistry) , revenue , freedom of choice , microeconomics , distribution (mathematics) , public finance , simple (philosophy) , set (abstract data type) , economic freedom , mathematical economics , public economics , macroeconomics , market economy , finance , computer science , mathematics , mathematical analysis , philosophy , physics , epistemology , quantum mechanics , programming language
ABSTRACT The quantity of an individual's freedom is thought to coincide with the width of her opportunity set, and this is defined by taking account of budgetary, institutional and legal constraints to choices. A simple cardinal measure of freedom is proposed on the ground of which some exercises in comparative statics are worked out. It is shown that individual choice freedom may be widened when a new good is publicly provided free or at a low price. Furthermore, it is argued that progressive taxation redistributes freedom in favour of the poor, all the more so when public revenues are used to finance the public provision of goods, in which case overall freedom may be augmented.