We’re bringing again worth idea with our sequence on Worth Concept issues with Professor Bryan Cutsinger. You may see all of Cutsinger’s issues and options by subscribing to his EconLog RSS feed.
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Query: One frequent argument towards public help taking the type of direct money handouts is that the recipients will use the cash to purchase issues that taxpayers discover objectionable, e.g., illicit medication, playing, and so on. To keep away from this final result, the argument goes, public help ought to take the type of in-kind transfers, e.g., meals, housing, medical care, and so on. What does this argument assume concerning the revenue elasticities of objectionable items? Suppose the recipients may costlessly resell the in-kind transfers. On this case, is there any distinction between direct money handouts and in-kind transfers?
