This paper investigates the choice of the composition of government expenditure using both positive and normative approaches. The former involves aggregation over selfish voters (simple majority voting and stochastic voting are examined), while the latter involves the choice by a single...

Provides a framework for analysing the financing of state pensions with a wide range of policy options. Special attention is given, however, to two special cases: the first involves a means-tested pension similar to the Australian scheme, while the second is similar to the basic pension (the...

Examines, using a simple model, the choice of appropriate contributions of taxes and fees used to finance higher education. A two-period model is developed in which individuals in cohort invest in higher education in the first period, and the interdependences between educational choice and the...

The use of selective benefits, directed to those considered most in need, has a high 'poverty reduction efficiency'. But selectivity inevitably produces non-linearities in the budget constraints facing individuals, which may have incentive effects. The design of a tax and transfer scheme...

This article uses the Melbourne Institute Tax and Transfer Simulator to examine the effects of a reduction in the means-tested benefit taper, or withdrawal, rates in Australia to 30 per cent. That is, all taper rates of 50 per cent and 70 per cent in the March 1998 benefit system are reduced to...