Maria Concetta Chiuri () (Department of Economics, University of Bari and CSEF, University of Salerno) Ernesto Longobardi (Department of Economics, University of Bari)
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This paper adopts a "piece-meal" approach to empirically identify, on a sample of Italian households, a collective model where both nonparticipation and non-convex budget sets are allowed for. Two tax reforms, i.e. the 2002 tax changes recently introduced in Italy and a revenue neutral linear income tax are evaluated by the collective framework derived. The predictions obtained for individual labour supplies, income and welfare distribution are then compared with those of a traditional unitary model. The exercise provide an assessment of the distortion introduced in positive and normative analyses when individuals are assumed to behave as if in a unitary, rather than in a collective world. The results suggest that further efforts should be devoted to the analysis of intra-household decision models.
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Paper provided by Dipartimento di Scienze Economiche - Università di Bari in its series series with number
0007.
Length: 50 Date of creation: Date of revision: Handle: RePEc:bai:series:wp0007
Note: This paper is part of the project "Welfare analysis of fiscal and social security reform in Europe: does the representation of family decision process matter?". We are grateful to F. Laisney and D. Beninger for help, advise, for providing technical support and for careful reading of a previous draft. We would also like to thank for comments R. Blundell, F. Bourguignon, M. Browning, J. Ruiz Castillo, P.-A. Chiappori, C. Meghir and all participants to several meetings at IFS, London and ZEW, Mannheim. The EU, General Directorate of Employment and Social Affairs provided financial support, under grant VS/2000/0778. Contact details of provider: Postal: Via Camillo Rosalba, 53 - 70124 - Bari ITALY Phone: +390805049042 Fax: +390805049149 Web page: http://www.dse.uniba.it More information through EDIRC
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