A Note on the Theory of Income Redistribution

With the increasing interest in problems of the welfare state in recent years, economists have been led to consider whether some forms of subsidisation may not be better, in some sense, than others. For instance, it has been held by some of them that direct subsidisation is better than indirect subsidisation because the former interferes less with the allocation of resources.' It is the purpose of this note to test these conclusions under different conditi.ons by means of theoretical economic analysis

Economics · Neoclassical economics · Political science · Redistribution (election) · Redistribution of income and wealth · Fiscal Policy and Economic Growth · Law