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A political economy of loose means-testing in targeted social programs
Economics Letters ( IF 1.469 ) Pub Date : 2021-03-16 , DOI: 10.1016/j.econlet.2021.109810
Helmuth Cremer , Justina Klimaviciute , Pierre Pestieau

This paper studies the political sustainability of programs that are targeted toward the poor. Given that the poor to whom these programs cater do not constitute a majority, we show that for their own good it pays to let the middle class benefit from them in a random way. This approach mimics the actual institutional arrangements whereby middle-class individuals feel that they can successfully apply to the programs. We consider a two stage decision process: first a Rawlsian government chooses the probability at which the middle class is allowed to benefit from a given program; then, majority voting determines the level of benefit and the rate of contribution. At the first, constitutional stage, the government cannot commit to a specific level of taxes and benefit but anticipates that these are set by majority voting in the second stage.



中文翻译:

在有针对性的社会计划中进行宽松的经济状况测试的政治经济学

本文研究了针对贫困人口的计划的政治可持续性。鉴于这些计划所面向的穷人并不占多数,我们证明,为了自己的利益,让中产阶级随机受益是有必要的。这种方法模仿了实际的制度安排,中产阶级认为个人可以成功申请该计划。我们考虑一个两阶段的决策过程:首先,罗尔斯政府选择允许中产阶级从给定计划中受益的可能性;然后,多数投票决定收益的水平和贡献率。在第一宪法阶段,政府无法承诺特定水平的税收和利益,但预计第二阶段将由多数投票决定。

更新日期:2021-03-25
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