The Impact of the Budget on Lifetime Income: A Survey

Abstract

The problems involved in trying to measure the effect of the budget on the distribution of lifetime income are reviewed. A comparison is made of the likely differences between the stylised facts of annual incidence studies and the possible lifetime impact of the budget. Annual studies show that redistribution to the poor occurs, primarily as a result of pensions. It is likely that the lifetime incidence of the budget is broadly neutral since pensions will not accrue mainly to the lowest deciles when a lifetime income perspective is taken.

On the marginal social cost of cash‐cum‐in‐kind transfers

“…See Welham (1990) for a survey on the effect of the budget on the distribution of lifetime income and Rodriguez (2006) for empirical evidence of the role of the federal transfers on the β ‐convergence process in Canadian provinces.…”