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A Public Choice Explanation for the Decline in Real income Transfers

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  • Christopher B. Colburn

    (Old Dominion University)

Abstract

A public choice model is used to explain the decline in the sum of AFDC and food stamp transfers that occurred about the time the food stamp program was introduced. The theoretical results suggest that the decline may be due to an increase in the marginal cost of income redistribution that results from the negative income tax feature of the food stamp program and the increase in federal tax that is required to finance the program.

Suggested Citation

  • Christopher B. Colburn, 1990. "A Public Choice Explanation for the Decline in Real income Transfers," Public Finance Review, , vol. 18(1), pages 123-134, January.
    • Handle: RePEc:sae:pubfin:v:18:y:1990:i:1:p:123-134
    DOI: 10.1177/109114219001800109
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    References listed on IDEAS

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    1. Brown, Charles C. & Oates, Wallace E., 1987. "Assistance to the poor in a federal system," Journal of Public Economics, Elsevier, vol. 32(3), pages 307-330, April.
    2. Johnson, William R, 1988. "Income Redistribution in a Federal System," American Economic Review, American Economic Association, vol. 78(3), pages 570-573, June.
    3. Moffitt, Robert A., 1984. "The effects of grants-in-aid on state and local expenditures : The case of AFDC," Journal of Public Economics, Elsevier, vol. 23(3), pages 279-305, April.
    4. Hugh Spall, 1978. "State tax structure and the supply of AFDC assistance," Public Choice, Springer, vol. 33(4), pages 85-96, December.
    5. Orr, Larry L, 1976. "Income Transfers as a Public Good: An Application to AFDC," American Economic Review, American Economic Association, vol. 66(3), pages 359-371, June.
    6. Plotnick, Robert D. & Winters, Richard F., 1985. "A Politico-Economic Theory of Income Redistribution," American Political Science Review, Cambridge University Press, vol. 79(2), pages 458-473, June.
    7. Edward M. Gramlich, 1982. "An Econometric Examination of the New Federalism," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 13(2), pages 327-370.
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