A Contribution Towards the New Zealand's Tax Reform
We use the work-leisure choice model to estimate equilibrium labour supply (hours-worked) in New Zealand and Australia over the period 2000 – 2008. We then stochastically solve the model over a future period from 2010 to 2015, and then re-solve it under six different tax policy scenarios for New Zealand. We evaluate the welfare and relative productivity implications of each policy.
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