Income Transfers as a Public Good: Comment
评论Orr关于最优转移支付水平的理论框架，指出其混淆了种族歧视与阶级歧视，夸大了种族偏见对转移政策的影响。
In the June 1976 issue of this Review, Larry Orr provided a theoretical framework for ascertaining the optimum level of transfer payments. Building on the foundations of the theory of public goods, he demonstrates that the optimum level of such transfers is a unique function of the (diminishing) marginal utility to taxpayers of improved income support for the poor and the (increasing) marginal cost to taxpayers of larger transfer payments. A unique feature of Orr's approach is his recognition of differences among individuals (taxpayers and recipients alike) in their perceived marginal utilities and costs and his resolution of such differences by simple majority rule. Thus, the optimum level of transfer payments emerges from his model as a unique manifestation of both democratic and economic principles. Orr utilizes this theoretical framework to rationalize the disparity in welfare benefits available in the different states. The focus of his empirical application is on the Aid to Families with Dependent Children (AFDC) program, for the years 1963-67 and 1968-72. In seeking to apply his theoretical framework, Orr must of course identify empirical approximations for his basic arguments. In so doing, I believe he has obscured a critical distinction between racism and classism, and exaggerated the significance of racial prejudices for transfer policy.' Although this in no way detracts from the completeness of his model, it is an issue of sufficient concern to merit some further consideration.