We’re bringing again value idea with our collection on Worth Idea issues with Professor Bryan Cutsinger. You’ll be able to see all of Cutsinger’s issues and options by subscribing to his EconLog RSS feed.
Share your proposed options within the Feedback. Professor Cutsinger will likely be current within the feedback for the following couple of weeks, and we’ll publish his proposed resolution shortly thereafter. Might the graphs be ever in your favor, and lengthy reside value idea!
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 forth. To keep away from this end result, the argument goes, public help ought to take the type of in-kind transfers, e.g., meals, housing, medical care, and so forth. What does this argument assume concerning the earnings elasticities of objectionable items? Suppose the recipients might costlessly resell the in-kind transfers. On this case, is there any distinction between direct money handouts and in-kind transfers?