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Cremer, Helmuth
and Roeder, Kerstin
(2015)
Means testing versus basic income: the (lack of) political support for a universal allowance.
TSE Working Paper, n. 15-588
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Abstract
This paper studies the political economy of a basic income (BI) versus a means tested welfare scheme. We show in a very simple setting that if society votes on the type of system, its generosity as well as the “severity” of means testing (if any), a BI system could only emerge in the political equilibrium under very strong and empirically implausible conditions. Instead, the political process leads to a means tested system. The necessity to draw political support does affect the design of the system, but it only implies that means testing becomes less severe so that benefits are extended also to themiddle classes. However, a fully universal system is rejected by a majority.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | July 2015 |
| Uncontrolled Keywords: | Basic income, Means testing, Political support |
| JEL Classification: | D3 - Distribution D7 - Analysis of Collective Decision-Making H2 - Taxation, Subsidies, and Revenue H5 - National Government Expenditures and Related Policies |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 21 Sep 2015 13:08 |
| Last Modified: | 02 Apr 2021 15:49 |
| OAI Identifier: | oai:tse-fr.eu:29485 |
| URI: | https://publications.ut-capitole.fr/id/eprint/18409 |
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- Means testing versus basic income: the (lack of) political support for a universal allowance. (deposited 21 Sep 2015 13:08) [Currently Displayed]
