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Approche expérimentale de l'incidence de la fiscalité sur l'offre de travail : une étude comparative des systèmes d'imposition

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  • David Masclet
  • Claude Montmarquette

Abstract

While taxation is essential to ensure the proper functioning of theState, it can pose threats to economic performance and to some extent discourage individuals from supplying labor. This article examines whether different tax systems have an identical incidence on labor supply and tax revenues. For instance, does a progressive system discourage labor supply more than a proportional system? Which tax system allows the State to play its redistributive role most effectively? To address these questions, we have chosen three experimental tests. In the first, participants have haveto make a real effort under a proportional tax system. In the second test, we apply a progressive system. In the third test, participants are subjected to several tax systems in succession. The latter test enables us to measure the incidence of system change on individual decisions. Our experimental results show unambiguously that a progressive system has a greater disincentive effect on labor supply than a proportional system. Another interesting result of our study is that individuals are influenced not only by their present tax system but also by their earlier tax experience.

Suggested Citation

  • David Masclet & Claude Montmarquette, 2008. "Approche expérimentale de l'incidence de la fiscalité sur l'offre de travail : une étude comparative des systèmes d'imposition," Economie & Prévision, La Documentation Française, vol. 0(1), pages 47-59.
  • Handle: RePEc:cai:ecoldc:ecop_182_0047
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    References listed on IDEAS

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    1. Sutter, Matthias & Weck-Hannemann, Hannelore, 2003. "Taxation and the Veil of Ignorance--A Real Effort Experiment on the Laffer Curve," Public Choice, Springer, vol. 115(1-2), pages 217-240, April.
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    More about this item

    Keywords

    tax systems; labor supply and tax revenues; experimental study;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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