A Public Choice Explanation for the Decline in Real income Transfers

Christopher B. Colburn
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Christopher B. Colburn: Old Dominion University

Public Finance Review, 1990, vol. 18, issue 1, 123-134

Abstract: A public choice model is used to explain the decline in the sum of AFDC and food stamp transfers that occurred about the time the food stamp program was introduced. The theoretical results suggest that the decline may be due to an increase in the marginal cost of income redistribution that results from the negative income tax feature of the food stamp program and the increase in federal tax that is required to finance the program.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:18:y:1990:i:1:p:123-134

DOI: 10.1177/109114219001800109

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