How does predistribution affect redistribution? / Ravi Kanbur and Matti Tuomala
Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: Centre for Economic Policy Research. Discussion papers ; DP18758Publisher: London : Centre for Economic Policy Research, 17 January 2024Description: 1 Online-Ressource (circa 30 Seiten) : IllustrationenSubject(s): Genre/Form: Online resources: Summary: This paper presents an analysis of the consequences for redistribution policies of achieving a more equal predistribution, that is, a more equal distribution of the predetermined income earning capabilities that individuals bring to the market. We show that optimal fiscal policies are less redistributive when the predistribution is more equal. We then quantify the value of a more equal predistribution. We show that total consumption is higher with a more equal predistribution. We also develop a money metric measure of social welfare and show that a more equal predistribution increases this measure for a Utilitarian and Prioritarian Social Welfare Function but may decrease it for the Maximin.PPN: PPN: 1879094088Package identifier: Produktsigel: ZDB-1-CEPPNo physical items for this record