The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach

Claudio Thum and Alfons Weichenrieder

Scandinavian Journal of Economics, 2000, vol. 102, issue 4, 737-746

Abstract: 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: H23; D30;,H41

Date: 2000
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