IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v43y2015i3p402-427.html
   My bibliography  Save this article

Family Taxation, Fertility, and Horizontal Equity

Author

Listed:
  • Alessandro Balestrino

    () (Department of Political Sciences, University of Pisa, Pisa, Italy
    CESifo, Münich, Germany)

Abstract

This article intends to make a twofold contribution to the literature. First, it studies a political economy model of family taxation using a household economics approach. The winning policy depends on whether (1) the parents control their fertility and (2) they value their children. Second, it investigates the question whether the winning policy can achieve horizontal equity (HE) among families experiencing different fertility outcomes. It turns out that in what we regard as the most plausible setup (parents value their children, fertility is generally endogenous but some couples are constrained by reproductive limits), HE cannot be satisfied under plausible assumptions on what the policy maker can observe. It is argued that HE requires subsidies not for large families as such but for constrained families, which in some cases might be small. As it is difficult for a policy maker to ascertain whether a family is constrained or not, strong doubts are cast on the usefulness of HE as a guide for the design of family taxes.

Suggested Citation

  • Alessandro Balestrino, 2015. "Family Taxation, Fertility, and Horizontal Equity," Public Finance Review, , vol. 43(3), pages 402-427, May.
  • Handle: RePEc:sae:pubfin:v:43:y:2015:i:3:p:402-427
    as

    Download full text from publisher

    File URL: http://pfr.sagepub.com/content/43/3/402.abstract
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:43:y:2015:i:3:p:402-427. 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: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.