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Quadratic Utility, Labour Supply and The Welfare Effects of Tax Changes

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Author Info

  • Creedy, J.

Abstract

1. Introduction 2. Labour Supply 3. The Slutsky Condition 4. Welfare Changes 4.1 The Expenditure Function 4.2 Compensating and Equivalent Variations 5. Numerical Examples 5.1 The Tax System 5.2 Utility and Labour Supply 6. Conclusions

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Bibliographic Info

Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 774.

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Length: 16 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:mlb:wpaper:774

Note: This paper has now been published in: Creedy, J. (2001), Quadratic Utility, Labour Supply and the Welfare Effects of Tax Changes, Australian Journal of Labour Economics, 4, no.4, pp. 272-280.
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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
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Web page: http://www.economics.unimelb.edu.au
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Related research

Keywords: LABOUR ; SUPPLY ; TAXES;

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Cited by:
  1. John Creedy & Nicolas Hérault & Guyonne Kalb, 2007. "Comparing Welfare Change Measures with Income Change Measures in Behavioural Policy Simulations," Melbourne Institute Working Paper Series wp2007n21, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. John Creedy & Guyonne Kalb, 2001. "Measuring Welfare Changes With Nonlinear Budget Constraints in Continuous and Discrete Hours Labour Supply Models," Melbourne Institute Working Paper Series wp2001n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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