Optimization and Quantitative Assessment of Child Allowances

Vidar Christiansen
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Vidar Christiansen: University of Oslo

A chapter in Measurement in Public Choice, 1981, pp 103-122 from Palgrave Macmillan

Abstract: Abstract This paper illustrates a possible application of revealed social preferences. Welfare weights revealed to be implicit in the Norwegian system of indirect taxation in a previous paper, are adopted to explore whether child allowances in Norway are optimal given these welfare weights. A set of optimality conditions—which may be interesting in their own right—is established, and economic interpretations are presented. The empirical results indicate that the allocation of child allowances is inconsistent with the design of indirect taxation in pursuing distributional ends. A reallocation in favor of larger families seems advantageous given the implicit welfare weights.

Keywords: Disposable Income; Indirect Taxation; Consumer Expenditure; Marginal Propensity; Child Allowance (search for similar items in EconPapers)
Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-05090-1_9

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DOI: 10.1007/978-1-349-05090-1_9

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