On the Optimal Fiscal Treatment of Family Size
Should a benevolent social planner subsidize family size? Typically, contributions assuming exogenous fertility yield an affirmative answer, while those assuming endogenous fertility do not reach definite conclusions. We re-examine the endogenous fertility model, and find that when redistribution is accomplished mostly using non-income taxes, there is indeed a case for encouraging fertility, as long as poor families tend to have more children. Instead, when redistribution is mainly pursued using a non-linear income tax, the above rationale for child subsidization disappears. We finally 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.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 58 (2001)
Issue (Month): 2 (February)
|Contact details of provider:|| Web page: http://www.mohr.de/fa|
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
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.:
- Nava, Mario & Schroyen, Fred & Marchand, Maurice, 1996. "Optimal fiscal and public expenditure policy in a two-class economy," Journal of Public Economics, Elsevier, vol. 61(1), pages 119-137, July.
- Cigno, Alessandro, 1983. "Corrigendum [On Optimal Family Allowances]," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 329, July.
- Cigno, Alessandro & Pettini, Anna, 2002. "Taxing family size and subsidizing child-specific commodities?," Journal of Public Economics, Elsevier, vol. 84(1), pages 75-90, April.
- Apps, P.F. & Rees, R., 1998.
"On the Taxation of Trade Within and Between Households,"
337, Australian National University - Department of Economics.
- Apps, Patricia & Rees, Ray, 1999. "On the taxation of trade within and between households," Journal of Public Economics, Elsevier, vol. 73(2), pages 241-263, August.
- Cigno, Alessandro, 1983. "On Optimal Family Allowances," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 13-22, March.
- Dasgupta, Partha, 2000. "Reproductive externalities and fertility behaviour," European Economic Review, Elsevier, vol. 44(4-6), pages 619-644, May.
- Henrik Jacobsen Kleven, . "Optimum Taxation and the Allocation of Time," EPRU Working Paper Series 00-16, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, .
- Balcer, Yves & Sadka, Efraim, 1986. "Equivalence scales, horizontal equity and optimal taxation under utilitarianism," Journal of Public Economics, Elsevier, vol. 29(1), pages 79-97, February.
- Batina, Raymond G., 1987. "The consumption tax in the presence of altruistic cash and human capital bequests with endogenous fertility decisions," Journal of Public Economics, Elsevier, vol. 34(3), pages 329-354, December.
- Sandmo, Agnar, 1990. "Tax Distortions and Household Production," Oxford Economic Papers, Oxford University Press, vol. 42(1), pages 78-90, January.
When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(200202)58:2_140:otofto_2.0.tx_2-8. 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: (Thomas Wolpert)
If references are entirely missing, you can add them using this form.