Evaluating Alternative Basic Income Mechanisms. A Simulation for European Countries
AbstractWe develop and estimate a microeconometric model of household labour supply in five European countries representative of different economies and welfare policy regimes: Denmark, Italy, Norway, Portugal and United Kingdom. We then simulate, under the constraint of constant total net tax revenue, the effects of various hypothetical tax-transfer reforms which include alternative versions of a Basic Income mechanisms. We produce various indexes and criteria according to which the reforms can be ranked. The exercise can be considered as one of empirical optimal taxation, where the optimization problem is solved computationally rather than analytically.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 578.
Date of creation: Feb 2009
Date of revision:
Basic Income; Minimum Guaranteed Income; Models of Labour Supply; Tax Reforms; Welfare Evaluation; Optimal Taxation;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-07 (All new papers)
- NEP-CMP-2009-03-07 (Computational Economics)
- NEP-EEC-2009-03-07 (European Economics)
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