Public Goods and the Distribution of Income

Local public goods and the demand for high-income municipalities

Affluent towns often deliver high-quality public services to their residents. I estimate the willingness to pay to live in a high-income suburb, above and beyond the demand of wealthy neighbors, by measuring changes in housing prices across city–suburban borders as the income disparity between the two municipalities changes over time. I find that a $10,000 increase in town-level median income i...

Distribution-neutral provision of public goods

The paper describes a normative approach to budget incidence, given the provision of a public good. The objective is to balance the budget by an income tax such that the budget is distribution-neutral. This property requires that every consumer’s net welfare gain, i.e. the benefit from consuming the public good and the tax burden in financing it, does not change the inequality inherent in the i...

Optimal Income Taxation, Public Goods Provision and Robust Mechanism Design

This paper extends the model of optimal income taxation due to Mirrlees (1971) and includes private information on public goods preferences. A mechanism design approach is used to establish the following result: If policies are required to be robustly implementable in the sense of Bergemann and Morris (2005), then the optimality conditions in the extended model with uncertainty about tax and ex...

Financial Development And The Distribution Of Income In MENA

Estimating the Income Elasticities of Health Expenditures for Income Quintiles and Inequality of Health Expenditures Distribution

Background: Determining the income elasticities of the household health expenditures, especially for income deciles, leads to adoption of appropriate policies to control and manage health expenditures among income deciles. Therefore, the main purpose of this study was to estimate the income elasticities of urban household health expenditures by income quintiles, and also calculate inequality in...