Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980 - 1991
AbstractThis paper evaluates the tax reforms carried out in Sweden between 1980 and 1991. We use a recently developed nonparametric labor supply function to account for the behavorial responses of the taxed individuals. We decompose the tax reform to study how the separate components influence hours of work, tax revenues and income distribution. The results indicate that the reform was underfinanced and that the increased indirect taxation and redesigned transfer system almost eliminated the positive effects on hours of work due to the decreased marginal taxes on labor income. Further, we compare the results to the predictions of a parametric estimated labor supply model. The responses of the parametric model is almost twice the size of the nonparametric.
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Bibliographic InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1997:29.
Length: 33 pages
Date of creation: 04 Dec 1997
Date of revision:
Publication status: Published in Journal of Public Economics, 2001, pages 543-568.
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Nonparametric estimation; labor supply; tax revenues; income distribution;
Other versions of this item:
- Blomquist, Soren & Eklof, Matias & Newey, Whitney, 2001. "Tax reform evaluation using non-parametric methods: Sweden 1980-1991," Journal of Public Economics, Elsevier, vol. 79(3), pages 543-568, March.
- Blomquist, S. & Eklof, M. & Newey, W., 1997. "Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980-1991," Papers 1997-29, Uppsala - Working Paper Series.
- Soren Blomquist & Matias Eklof & Whitney Newey, 1998. "Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980 - 1991," NBER Working Papers 6759, National Bureau of Economic Research, Inc.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-08-31 (All new papers)
- NEP-ECM-1998-08-31 (Econometrics)
- NEP-MIC-1998-08-31 (Microeconomics)
- NEP-PBE-1998-08-31 (Public Economics)
- NEP-PUB-1998-08-31 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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