On The Optimal Fiscal Treatment Of Family Size
AbstractShould a benevolent social planner subsidise family size? Typically, contributions assuming exogenous fertility yield an a¢rmative answer, while those assuming endogenous fertility do not reach de…nite conclusions. We re-examine the endogenous fertility model, and …nd that when redistribution is accomplished mostly using non-income taxes, there is indeed a case for subsidising the number of children, as long as poor families tend to have more children. Instead, when redistribution is pursued prevalently using a non-linear income tax, the above rationale for children subsidisation disappears. We …nally argue that whether children are a tax asset or a tax liability depends however on all the policy instruments, and not only on the tax treatment of family size.
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Bibliographic InfoPaper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp04_01.
Length: 18 pages
Date of creation: Jan 2001
Date of revision:
endogenous fertility; taxation of family size; optimal linear and non-linear taxation; vertical equity;
Other versions of this item:
- 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
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- Volker Meier & Matthias Wrede, 2008.
"Reducing the Excess Burden of Subsidizing the Stork: Joint Taxation, Individual Taxation, and Family Tax Splitting,"
CESifo Working Paper Series
2470, CESifo Group Munich.
- Volker Meier & Matthias Wrede, 2013. "Reducing the excess burden of subsidizing the stork: joint taxation, individual taxation, and family tax splitting," Journal of Population Economics, Springer, vol. 26(3), pages 1195-1207, July.
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