Wikipedia (reference below) defines a transfer payment (or government transfer or simply transfer) as a redistribution of income in the market system.
Wikipedia goes on to say:
“These payments are considered to be non-exhaustive because they do not directly absorb resources or create output. In other words, the transfer is made without any exchange of goods or services. Examples of certain transfer payments include welfare (financial aid), social security, and government making subsidies for certain businesses (firms).
“In some federal systems the term can also be used to refer to payments from one order of a government to another; for example in Canada, transfer payments usually refer to a system of payments from the federal government to the provinces.”
Wikipedia, Transfer Payment, at https://en.wikipedia.org/wiki/Transfer_payment, accessed 11 May 2016.
Atlas topic and subject
Labour Markets, Transfer Payments, and Personal Taxes (core topic) in Economic Analysis and Atlas102.
Page created by: Ian Clark, last modified on 11 May 2016.