Full Citation

Title: Heterogeneous preferences and in-kind redistribution: Theory and evidence

Citation Type: Journal Article

Publication Year: 2015

ISBN:

ISSN:

DOI: 10.1016/J.EUROECOREV.2015.06.001

NSFID:

PMCID:

PMID:

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: https://www.sciencedirect.com/science/article/pii/S001429211500080X

User Submitted?: No

Authors: Bellani, Luna; Scervini, Francesco

Periodical (Full): European Economic Review

Issue:

Volume: 78

Pages: 196-219

Data Collections: IPUMS CPS

Topics: Other

Countries: