In many countries, the political party holding power changes more frequently than the trend growth rates in government spending and taxes. Shifts of political power are often preceded by rhetoric about ‘meeting needs’ or cutting taxes, which post-election performances rarely match. Yet,...

Normative arguments for restricting redistribution to cash transfers or a negative income tax have not appealed to politicians or their constituents. All modern governments redistribute income in kind and provide goods and services that can be produced and distributed privately. At times public...