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A large scale OLG model for the analysis of the redistributive effects of policy reforms

Listed author(s):
  • Bucciol, Alessandro
  • Cavalli, Laura
  • Fedotenkov, Igor
  • Pertile, Paolo
  • Polin, Veronica
  • Sartor, Nicola
  • Sommacal, Alessandro

The paper presents a large scale overlapping generation model with heterogeneous agents, where the household is the decision unit. We calibrate the model for three European countries – France, Italy and Sweden – which show marked differences in the design of some public programmes. We examine the properties in terms of annual and life cycle redistribution of a number of tax-benefit programmes, by studying the impact of removing from our model economies some or all of them. We find that whether one considers a life cycle or an annual horizon, and whether behavioural responses are accounted for or not, has a large impact on the results. The model may provide useful insights for policy makers on which kind of reforms are more likely to achieve specific equity objectives.

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File URL: http://www.sciencedirect.com/science/article/pii/S0176268016301197
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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 48 (2017)
Issue (Month): C ()
Pages: 104-127

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Handle: RePEc:eee:poleco:v:48:y:2017:i:c:p:104-127
DOI: 10.1016/j.ejpoleco.2016.08.005
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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