Why poor countries rely mostly on redistribution in-kind

• 成果类型: Article; Proceedings Paper
• 署名作者: Bearse, P; Glomm, G; Janeba, E
• 署名单位: Michigan State University; University of North Carolina; University of North Carolina Greensboro; Indiana University System; Indiana University Bloomington
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(99)00076-6
• 发表日期: 2000
• 页码: 463-481
• 关键词: public provision; transfers; redistribution; Majority Voting

摘要

We present a model in which the crucial distinction between rich and poor countries is that governments in rich countries have access to a more productive tax collection technology than governments in poor countries. Since the tax collection technology in poor countries is poor, the quality of the public service is low. Therefore many households at the top of the income distribution opt out of the public service. The median voter takes this into consideration and allocates a larger share of the public budget to redistribution in-kind (public service) than to redistribution in cash. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification: H5; D72.