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Theoretical Issues in Size Income Distribution Policy

In: Incomes Policies

Author

Listed:
  • Joop Hartog

    (University of Amsterdam)

  • Jozef M. M. Ritzen

    (Erasmus University)

Abstract

In this paper we discuss some of the pressing problems in the theory of size income distribution policy. We consider the following problems: The definition of the income unit for purposes of income distribution policy. The relevance of individual labour-leisure choices for income distribution policy. The trade-off between equity and efficiency and the implications. The treatment of tertiary income in income distribution policy. Many recent contributions to the theory of size income distribution start with the remark that a coherent theory of income distribution is lacking. Since these contributions all aim to improve on the situation, it is at least amusing to note that this remark is about the only constant in the various attempts. This bodes ill for income distribution policy. As long as there are controversies as deep as in income distribution theory, it will be impossible to formulate policy recommendations that obtain unanimous support from the economics professions. Economists’ continuous attempts to disentangle positive analysis and normative judgements are most visible in this area.

Suggested Citation

  • Joop Hartog & Jozef M. M. Ritzen, 1989. "Theoretical Issues in Size Income Distribution Policy," International Economic Association Series, in: Victor L. Urquidi (ed.), Incomes Policies, chapter 1, pages 3-21, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-20381-9_1
    DOI: 10.1007/978-1-349-20381-9_1
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