Public Goods and Income Distribution Some Further Results

Shlomo Maital

Working Paper from Economics Department, Queen's University

Abstract: Aaron and McGuire recently put forward a new method for imputing benefits of government expenditures on public goods for various income classes. They fail to present conclusive empirical results, however, lacking a parameter whose value is heretofore unmeasured. This note uses three independent empirical estimates of this crucial parameter to compute estimates of the net incidence of the fiscal system. For the U.S., 1961, it is found that benefits from public goods are regressively distributed. It is further suggested that the desire to equalize incomes requires provisions of less, not more, public goods.

Pages: 18
Date: 1972
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:101

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