Efficiency Costs and the Demand for Income Redistribution

Efficiency Costs and the Demand for Income Redistribution

This study includes the marginal cost of redistribution (MCR) in analyzing the adjusted tax price faced by the median voter. The adjusted tax price is then used to analyze the degree to which efficiency costs change the level of income redistribution provided through the Aid to Families with Depende...

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Veröffentlicht in:Public finance review 1998-05, Vol.26 (3), p.214-230
Hauptverfasser: Colburn, Christopher B., Horowitz, John B.
Format: Artikel
Sprache:eng
Schlagworte:
Cost control
Costs
Domestic policy
Econometrics
Economic aspects
Economic models
Efficiency
Estimates
Government programs
Grants
Income distribution
Income redistribution
Labor supply
Medicaid
Population
Public finance
Real income
Redistributive taxation
Social services
Studies
Tax collection
Tax rates
Tax revenues
Taxation
Taxes
U.S.A
Variables
Voters
Welfare
Welfare economics
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Beschreibung
Zusammenfassung:This study includes the marginal cost of redistribution (MCR) in analyzing the adjusted tax price faced by the median voter. The adjusted tax price is then used to analyze the degree to which efficiency costs change the level of income redistribution provided through the Aid to Families with Dependent Children (AFDC) program. The results of this article suggest that efficiency costs, on average, raise the cost of AFDC transfers by approximately 28% and reduces the level of AFDC redistribution by about 14.6%.
ISSN:1091-1421
1552-7530
DOI:10.1177/109114219802600302