Lifetime and Annual Marginal Costs of Redistribution in England, Sweden, and the United States
The Review of Economics and Statistics
1993
Both the annual and lifetime marginal costs of redistribution in England, Sweden, and the United States are calculated. The annual marginal cost of redistribution is $2.90 in the United States, $3.53 in England, and $6.77 in Sweden. The lifetime marginal cost of redistribution is $4.46 in the United States and $7.96 in England. The lifetime marginal cost of redistribution in Sweden indicates that additional redistribution reduces the incomes of both the poor and nonpoor. This study also shows that when there is greater income equality, the marginal tax rate at which the incomes of the poor and nonpoor begin to be reduced will be at lower and lower levels. Copyright 1993 by MIT Press.
- DOI
- 10.2307/2109638
- Volume
- 75 (1)
- Pages
- 143
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