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Title: Heterogeneous Preferences and In-Kind Redistribution

Citation Type: Working Paper

Publication Year: 2014

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Abstract: This paper examines the impact of social heterogeneity on in-kind redistribution. We contribute to the previous literature in two ways: we consider i) the provision of several public goods and ii) agents different not only in income, but also in their preferences over the various goods provided by the public sector. In this setting, both the distribution and size of goods provision depend on the heterogeneity of preferences. Our main result is that preference heterogeneity tends to decrease in-kind redistribution, while income inequality tends to increase it. An empirical investigation based on United States Census Bureau data confirms these theoretical findings.

Url: http://kops.uni-konstanz.de/handle/123456789/29884

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Authors: Bellani, Luna; Scervini, Francesco

Series Title: University of Konstanz Department of Economics working Paper Series

Publication Number: 2014-21

Institution: University of Konstanz

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Data Collections: IPUMS CPS

Topics: Other

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