The Distributional Effects of Public Expenditure: Update and Overview
Summary:
It is commonly agreed that economic policies, including budgetary policies, can have potentially strong distributional effects. Traditional economic analysis held that economic policies affected the income distribution primarily through their impact on the rate of growth. More recently, it has come to be recognized that qualitative aspects of economic growth are probably more important than the rate of growth itself. While recent research has confirmed the potential role of expenditure policies as a redistributive tool, it has also shown that redistribution does not necessarily have to come at the expense of economic growth and efficiency. Although there are substantial analytical and technical problems to be faced in the design of equitable and cost-effective public expenditure programs, unfavorable distributional outcomes of these programs can usually be traced more to political and institutional pressures than to purely technical factors.
Series:
Working Paper No. 1995/084
Subject:
Consumption Expenditure Income distribution Income inequality National accounts Personal income Poverty
Notes:
An earlier version of this paper was presented at the "VIIth Regional Seminar on Fiscal Policy" of the Economic Commission for Latin America and the Caribbean (CEPAL) in Santiago, Chile, January 23-26, 1995.
English
Publication Date:
August 1, 1995
ISBN/ISSN:
9781451850581/1018-5941
Stock No:
WPIEA0841995
Pages:
28
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