Faculty of Economics and Business Administration Publications Database

The Distributional Impact of Public Goods Provision: A Veil of Ignorance Approach

Thum, Claudio
Volume: 102
Number: 4
Pages: 737 - 746
Month: 12
Year: 2000
Keywords: Redistribution; Public goods provision; Veil of ignorance

The "veil of ignorance" approach is used to consider the redistribution implied by different tax-benefit systems. Assuming a (hypothetical) ex-ante situation in which individuals lack any knowledge about their future income, redistribution from rich to poor can be seen as a form of insurance. Taking redistribution and insurance as synonymous, the analysis derives cases of redistributionally neutral systems of taxation and public good provision.