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Micro-simulation and Normative Policy Evaluation: An Application to Some EU Tax Benefits Systems




In this work we explore the impact of alternative tax benefits systems on household welfare. The framework of our analysis is the theory of optimal taxation with the distribution of potential wages replaced by the distribution of household abilities. The latter has been calculated by inversion of the household's utility maximization problem. This methodology has then been implemented in order to compare the tax benefits systems of France and the United Kingdom. We have employed a behavioral micro-simulation model that has been applied on samples extracted from the "Households Budget Survey 1989" of INSEE and from the "Family Expenditure Survey" of ONS. Copyright 2005 Blackwell Publishing Inc..

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  • Amedeo Spadaro, 2005. "Micro-simulation and Normative Policy Evaluation: An Application to Some EU Tax Benefits Systems," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(4), pages 593-622, October.
  • Handle: RePEc:bla:jpbect:v:7:y:2005:i:4:p:593-622

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    References listed on IDEAS

    1. Tuomala, Matti, 1990. "Optimal Income Tax and Redistribution," OUP Catalogue, Oxford University Press, number 9780198286059, June.
    2. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2007. "Collective Labour Supply: Heterogeneity and Non-Participation," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 417-445.
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    Cited by:

    1. van Sonsbeek, J.M. & Gradus, R.H.J.M., 2006. "A microsimulation analysis of the 2006 regime change in the Dutch disability scheme," Economic Modelling, Elsevier, vol. 23(3), pages 427-456, May.
    2. Bargain, Olivier & Orsini, Kristian, 2006. "In-work policies in Europe: Killing two birds with one stone?," Labour Economics, Elsevier, vol. 13(6), pages 667-697, December.
    3. Amedeo Spadaro, 2008. "Optimal taxation, social contract and the four worlds of welfare capitalism," Working Papers 98, ECINEQ, Society for the Study of Economic Inequality.
    4. Zoutman, Floris T. & Jacobs, Bas, 2016. "Optimal redistribution and monitoring of labor supply," Journal of Public Economics, Elsevier, vol. 135(C), pages 15-31.
    5. Květa Kubátová, 2009. "Optimal Taxation - Review of Theory," Český finanční a účetní časopis, University of Economics, Prague, vol. 2009(3), pages 24-36.
    6. Eugenio Zucchelli & Andrew M Jones & Nigel Rice, 2012. "The evaluation of health policies through dynamic microsimulation methods," International Journal of Microsimulation, International Microsimulation Association, vol. 5(1), pages 2-20.
    7. Lietz, Christine & Mantovani, Daniela, 2006. "Lessons from building and using EUROMOD," EUROMOD Working Papers EM5/06, EUROMOD at the Institute for Social and Economic Research.
    8. Zucchelli, E & Jones, A.M & Rice, N, 2010. "The evaluation of health policies through microsimulation methods," Health, Econometrics and Data Group (HEDG) Working Papers 10/03, HEDG, c/o Department of Economics, University of York.

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