The Working Families’ Tax Credit and Some European Tax Reforms in A Collective Setting
A framework for simplified implementation of the collective model of labor supply decisions is presented in the context of fiscal reforms in the UK. Through its collective form the model accounts for the well known problem of distribution between wallet and purse, a broadly debated issue which has so far been impossible to model due to the limitations of the unitary model of household behavior. A calibrated data set is used to model the effects of introducing two forms of the Working Families’ Tax Credit. We also summarize results of estimations and calibrations obtained using the same methodology on data from five other European countries. The results underline the importance of taking account of the intrahousehold decision process and suggest that who receives government transfers does matter from the point of view of labor supply and welfare of household members. They also highlight the need for more research into models of household behavior. Copyright Springer Science+Business Media, LLC 2006
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.:
- Mike Brewer & Tom Clark, 2002. "The impact on incentives of five years of social security reform in the UK," IFS Working Papers W02/14, Institute for Fiscal Studies.
- Richard Blundell & Pierre-André Chiappori & Costas Meghir, 2005.
"Collective Labor Supply with Children,"
Journal of Political Economy,
University of Chicago Press, vol. 113(6), pages 1277-1306, December.
- Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Bourguignon, F. & Browning, M. & Chiappori, P.A. & Lechene, V., 1992.
"Intra Household Allocation of Consumption : A Model and Some Evidence from French Data,"
DELTA Working Papers
92-08, DELTA (Ecole normale supérieure).
- François Bourguignon & Martin Browning & Pierre-André Chiappori & Valérie Lechene, 1993. "Intra Household Allocation of Consumption: A Model and some Evidence from French Data," Annals of Economics and Statistics, GENES, issue 29, pages 137-156.
- Chiappori, Pierre-Andre, 1992.
"Collective Labor Supply and Welfare,"
Journal of Political Economy,
University of Chicago Press, vol. 100(3), pages 437-67, June.
- Mike Brewer & Tom Clark & Matthew Wakefield, 2002. "Five years of social security reforms in the UK," IFS Working Papers W02/12, Institute for Fiscal Studies.
- Richard Blundell & Ian Walker, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," Review of Economic Studies, Oxford University Press, vol. 53(4), pages 539-558.
- Frederic Vermeulen & Olivier Bargain & Miriam Beblo & Denis Beninger & Richard Blundell & Raquel Carrasco & Maria-Concetta Chiuri & François Laisney & Valérie Lechene & Nicolas Moreau & Michal Myck & , 2006.
"Collective Models of Labor Supply with Nonconvex Budget Sets and Nonparticipation: A Calibration Approach,"
Review of Economics of the Household,
Springer, vol. 4(2), pages 113-127, 06.
- Vermeulen, F.M.P. & Bargain, O. & Beblo, M. & Beninger, D. & Blundell, R. & Carrasco, R. & Chiuri, M-C. & Laisney, F. & Lechene, V. & Moreau, N. & Myck, M. & Ruiz-castillo, J., 2006. "Collective models of labor supply with nonconvex budget sets and nonparticipation : A calibration approach," Other publications TiSEM 8dec6b88-3dce-460f-ab9b-2, Tilburg University, School of Economics and Management.
- repec:adr:anecst:y:1993:i:29 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:kap:reveho:v:4:y:2006:i:2:p:129-158. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.