EVALUATING THE DISTRIBUTION OF PUBLIC EXPENDITURE*

Gerrit Jan van't Eind, Hans van Fulpen, Evert Pommer and Leendert Ruitenberg

Review of Income and Wealth, 1986, vol. 32, issue 3, 299-312

Abstract: This article evaluates the distribution of public expenditure on subsidized goods and services over income categories. It is argued that undifferentiated application of usual measures of dispersion must be rejected when judging the distribution of these expenditures, because there are hardly any subsidized goods and services for which the government aims at equal consumption. Such an application requires a normative distribution of expenditure. The normative distribution of expenditure is derived from a normative distribution of consumption and the distribution of normative charges. Central elements are needs of consumers and their financial capacity. The normative distribution of consumption is based on government intentions with respect to the goods and services under consideration.

Date: 1986
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