The Distributional Effects of Government Spending and Taxation

This book focuses on the distributional consequences of the public sector. It examines and documents, both theoretically and empirically, the effects of government spending and taxation on personal distribution, that is, on families and individuals. In addition, it investigates the relationship between the public sector and the functional distribution of national income. In this respect, three sides of government activity are encompassed: the beneficiaries of government expenditures such as schools, highways, and police and fire departments; the beneficiaries of government transfer programs; and the bearers of the tax burden.

The book also analyzes government activity on the federal level and looks at the distribution of both the costs and benefits of a single government program such as Social Security.

A key feature is the empirical studies of other countries, including countries of the European Union, Poland, Australia, and South Korea, as well as comparative studies among a set of countries.

The chapters of this volume were selected from papers delivered at Levy Institute seminars and conferences aimed at finding policy options to pressing economic problems.