Private and Pareto Efficient Public Transfers

Private transfers are a market mechanism that changes the inequality in the distribution of income. Should the government increase or reduce the size of Pareto efficient public transfers after observing an increase in inter vivos private transfers that reduces (increases) inequality in the distribut...

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Detalhes bibliográficos
Autores: Ikuho Kochi, Raúl Alberto Ponce Rodríguez
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:2011
País:México
Recursos:Universidad Autónoma de Ciudad Juárez
Repositório:Redalyc-UACJ
OAI Identifier:oai:redalyc.org:32320948005
Acesso em linha:https://www.redalyc.org/articulo.oa?id=32320948005
Access Level:Acceso aberto
Palavra-chave:Economía y Finanzas
remittances
Redistribution
optimal taxation
personal income taxes
performance of government
Descrição
Resumo:Private transfers are a market mechanism that changes the inequality in the distribution of income. Should the government increase or reduce the size of Pareto efficient public transfers after observing an increase in inter vivos private transfers that reduces (increases) inequality in the distribution of income? In this paper we provide an answer to this question. Our analysis identifies conditions in which private transfers change income inequality and crowd out government¿s transfers in a targeted redistributive program, but increase the size of public transfers in a broad base redistributive program.