Abstract
Harberger (1978b) argues against using distributional weights on two grounds.1 (1) If the weights differ too much between people, they could be used to justify excessively inefficient projects. (2) Even so, the distributionalweights approach can lead to regressive marginal tax rates, which the public considers inequitable. This is Morton’s Fork indeed.2 I shall consider the two prongs in sequence.
Journal of Political Economy, 88(5) (1980), pp. 1041–7. © 1980 by The University of Chicago. All rights reserved.
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© 1999 Richard Layard
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Layard, R. (1999). On the Use of Distributional Weights in Social Cost-Benefit Analysis (1980). In: Tackling Inequality. Palgrave Macmillan, London. https://doi.org/10.1057/9780230375284_13
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DOI: https://doi.org/10.1057/9780230375284_13
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