Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76499 
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper No. 1121
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The relationship between inequality and redistribution is usually studied under the assumption that the government collects different amounts of taxes from each citizen (voter) but gives back the same amount (in cash or in kind) to everyone. In this paper we consider what happens if the government can redistribute through both sides of its budget (revenue and expenditure). We show that inequality may have no discernible effect on the size of redistributive programs.
Subjects: 
redistribution
inequality
public goods
median voter
Document Type: 
Working Paper
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