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Endogenous Fertility And The Design Of Family Taxation Author info | Abstract | Publisher info | Download info | Related research | Statistics Alessandro Cigno ()
Annalisa Luporini ()
Anna Pettini ()
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The paper innovates on the existing optimal taxation literature by taking fertility as endogenous, and allowing for households to be di¤erentiated by ability to raise children, as well as wage rates. In a context where the government cannot observe personal abilities, fertility behaviour conveys a great deal of information about those characteristics, that helps relax the self-selection constraints on the design of policy. One of the results is that, in the absence of explicit inequality aversion, re-distribution should always be in favour of low-wage households, even if the latter happen to have higher laissez-faire utility than high-wage households. Another is that children should be a tax asset to their parents only if market and domestic skills are positively correlated. Even in that case, however, the optimal policy may include an unusual mix of taxes on the number of children, subsidies on child-speci…c commodities, income support for low-wage households, and positive marginal rates of income tax for all.
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Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number
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Length: 23 pages
Date of creation: Jun 2000Date of revision:
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Keywords: optimal ; direct ; indirect ; taxation ; endogenous ; fertility ; children ; self-selection ; taxes ; Other versions of this item:
Find related papers by JEL classification: D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
References listed on IDEAS 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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references Cited by : (explanations , 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.)
Alessandro Cigno, 2009.
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Other versions: Jordahl, Henrik & Micheletto, Luca, 2002.
"Optimal Utilitarian Taxation and Horizontal Equity ,"
Ratio Working Papers
17, The Ratio Institute.
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Other versions:
Jordahl, Henrik & Micheletto, Luca, 2002.
"Optimal Utilitarian Taxation and Horizontal Equity ,"
Working Paper Series
2002:19, Uppsala University, Department of Economics.
[Downloadable!] Jordahl, Henrik & Luca Micheletto, 2002.
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[Downloadable!] (restricted) Makoto Hirazawa & Akira Yakita, 2009.
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Alessandro Cigno, 2001.
"Comparative Advantage, Observability, and the Optimal Tax Treatment of Families with Children ,"
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Alessandro Balestrino, 2001.
"On The Optimal Fiscal Treatment Of Family Size ,"
CHILD Working Papers
wp04_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
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Other versions: Alessandro Cigno & Annalisa Luporini, 2009.
"Optimal family policy in the presence of moral hazard, when the quantity and quality of children are stochastic ,"
CHILD Working Papers
wp13_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
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Alessandro Cigno & Annalisa Luporini, 2006.
"Optimal Policy Towards Families with Different Amounts of Social Capital, in the Presence of Asymmetric Information and Stochastic Fertility ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
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