“…First, since most public services are produced by public institutions we only observe expenditures and not prices. Thus, this study draws on standard practice by assuming that the total value of these services 2 For previous studies on the impact of in-kind benefits on the income distribution, see O'Higgins and Ruggles (1981), Gemmell (1985), Smeeding (1986), Smeeding et al (1993), Evandrou et al (1993), Ruggeri et al (1994), Slesnick (1996), Antoninis and Tsakloglou (2001), Aaberge and Langørgen (2006), Garfinkel et al (2006), Callan et al (2008), , , Aaberge, Langørgen and Lindgren (2010, Vaalavuo (2011), Verbist et al (2012), and Koutsampelas and Tsakloglou (2013). is equal to the total costs of producing them.…”