IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03541872.html
   My bibliography  Save this paper

Universal basic income with flat tax reform in France

Author

Listed:
  • Riccardo Magnani

    (CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord)

  • Luca Piccoli

Abstract

This article evaluates the effects of a revenue-neutral tax reform introducing a universal basic income scheme coupled with a flat income tax which replaces the existing minimum income benefit, several other conditional benefits and the existing progressive income taxation. To this aim we use a Micro–Macro simulation model for the French economy. Interestingly, our results show that the reform induces not only a significant reduction in income inequalities and poverty, but also a slightly positive effect at the macroeconomic level, implying that the equity-efficiency trade-off would not be produced.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Riccardo Magnani & Luca Piccoli, 2020. "Universal basic income with flat tax reform in France," Post-Print hal-03541872, HAL.
    • Handle: RePEc:hal:journl:hal-03541872
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ugo Colombino, 2019. "Is unconditional basic income a viable alternative to other social welfare measures?," IZA World of Labor, Institute of Labor Economics (IZA), pages 128-128, March.
    2. Duncan, Denvil, 2014. "Behavioral responses and the distributional effects of the Russian ‘flat’ tax," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 226-240.
    3. Horstschräer, Julia & Clauss, Markus & Schnabel, Reinhold, 2010. "An unconditional basic income in the family context: Labor supply and distributional effects," ZEW Discussion Papers 10-091, ZEW - Leibniz Centre for European Economic Research.
    4. Álvarez-Martínez, María Teresa & Polo, Clemente, 2012. "A general equilibrium assessment of external and domestic shocks in Spain," Economic Modelling, Elsevier, vol. 29(6), pages 2486-2493.
    5. Federico Perali & Pasquale Lucio Scandizzo (ed.), 2018. "The New Generation of Computable General Equilibrium Models," Springer Books, Springer, number 978-3-319-58533-8, September.
    6. Luciano Canova & Luca Piccoli & Amedeo Spadaro, 2015. "An ex ante evaluation of the Revenu de Solidarité Active by micro–macro simulation techniques," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-20, December.
    7. Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    9. Bingley, Paul & Walker, Ian, 1997. "The Labour Supply, Unemployment and Participation of Lone Mothers in In-Work Transfer Programmes," Economic Journal, Royal Economic Society, vol. 107(444), pages 1375-1390, September.
    10. Riccardo Magnani, 2015. "The Solow Growth Model Revisited. Introducing Keynesian Involuntary Unemployment," CEPN Working Papers hal-01203393, HAL.
    11. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    12. Paulus, Alari & Peichl, Andreas, 2009. "Effects of flat tax reforms in Western Europe," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 620-636, September.
    13. Ugo Colombino, 2015. "Five Crossroads on the Way to Basic Income. An Italian Tour," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 1(3), pages 353-389, November.
    14. Nicholas-James Clavet & Jean-Yves Duclos & Guy Lacroix, 2013. "Fighting Poverty: Assessing the Effect of Guaranteed Minimum Income Proposals in Quebec," Canadian Public Policy, University of Toronto Press, vol. 39(4), pages 491-516, December.
    15. Stiglitz, Joseph E., 2017. "The coming great transformation," Journal of Policy Modeling, Elsevier, vol. 39(4), pages 625-638.
    16. Ugo Colombino & Nizamul Islam, 2018. "Basic Income and Flat Tax: The Italian Scenario," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(03), pages 20-29, October.
    17. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    18. repec:iza:izawol:journl:y:2015:p:128 is not listed on IDEAS
    19. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-187, January.
    20. Peter Haan & Arne Uhlendorff, 2013. "Intertemporal labor supply and involuntary unemployment," Empirical Economics, Springer, vol. 44(2), pages 661-683, April.
    21. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    22. Rosanna Scutella, 2004. "Moves to a Basic Income-Flat Tax System in Australia: Implications for the Distribution of Income and Supply of Labour," Melbourne Institute Working Paper Series wp2004n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. La, Jung Joo, 2023. "The macroeconomic effects of basic income funded by a land-holding tax in Korea," Journal of Policy Modeling, Elsevier, vol. 45(1), pages 1-9.
    2. La, Jung Joo, 2023. "Macroeconomic effects of basic income funded by land holding tax," MPRA Paper 116151, University Library of Munich, Germany.
    3. Ugo Colombino & Nizamul Islam, 2021. "Combining microsimulation and optimization to identify optimal universalistic tax-transfer rule," LISER Working Paper Series 2021-06, Luxembourg Institute of Socio-Economic Research (LISER).
    4. Krajňák, Michal & Krzikallová, Kateřina & Friedrich, Václav, 2022. "Does political orientation affect economic indicators in the Czech Republic?," Journal of Policy Modeling, Elsevier, vol. 44(6), pages 1219-1231.
    5. Şansel Özpinar & Sacit Hadi Akdede, 2022. "Determinants of the Attribution of Poverty in Turkey: An Empirical Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(2), pages 949-967, November.
    6. Verena Löffler, 2021. "Questioning the feasibility and justice of basic income accounting for migration," Politics, Philosophy & Economics, , vol. 20(3), pages 273-314, August.
    7. Claudio Socci & Silvia D’Andrea & Stefano Deriu & Rosita Pretaroli & Francesca Severini, 2022. "Does the Personal Income Flat Tax fit with Economic Growth and Inequality in Italy?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(3), pages 523-548, November.
    8. Lazar Ilic & M Sawada, 2021. "The temporal evolution of income polarization in Canada’s largest CMAs," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-27, June.
    9. Colombino, Ugo & Islam, Nizamul, 2022. "The "Robot Economy" and Optimal Tax-Transfer Reforms," IZA Discussion Papers 15198, Institute of Labor Economics (IZA).
    10. Majumder, Amita & Ray, Ranjan & Santra, Sattwik, 2021. "Should commodity tax rates be uniform across regions in a heterogeneous country? Evidence from India," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1310-1331.
    11. Aerts, Elise & Marx, Ive & Verbist, Gerlinde, 2023. "Not That Basic: How Level, Design and Context Matter for the Redistributive Outcomes of Universal Basic Income," IZA Discussion Papers 15952, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Riccardo Magnani & Luca Piccoli & Martine Carré & Amedeo Spadaro, 2013. "Would a euro's depreciation improve the French economy?," Working Papers hal-01515823, HAL.
    2. Riccardo Magnani & Luca Piccoli & Martine Carré & Amedeo Spadaro, 2013. "Would a real depreciation of the euro improve the French economy?," DEA Working Papers 60, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    3. Luciano Canova & Luca Piccoli & Amedeo Spadaro, 2015. "An ex ante evaluation of the Revenu de Solidarité Active by micro–macro simulation techniques," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-20, December.
    4. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis, in: Handbook of Microsimulation Modelling, volume 127, pages 167-221, Emerald Group Publishing Limited.
    5. Islam, Nizamul & Colombino, Ugo, 2018. "The case for NIT+FT in Europe. An empirical optimal taxation exercise," Economic Modelling, Elsevier, vol. 75(C), pages 38-69.
    6. Rolf Aaberge & Ugo Colombino, 2018. "Structural Labour Supply Models and Microsimulation," International Journal of Microsimulation, International Microsimulation Association, vol. 11(1), pages 162-197.
    7. Nizamul Islam & Ugo Colombino, 2018. "The case for negative income tax with flat tax in Europe. An empirical optimal taxation exercise," Working Papers 454, ECINEQ, Society for the Study of Economic Inequality.
    8. Lucia Mangiavacchi & Luca Piccoli, 2009. "Child welfare and intra-household inequality in Albania," Working Papers 149, ECINEQ, Society for the Study of Economic Inequality.
    9. Ugo Colombino, 2019. "Is unconditional basic income a viable alternative to other social welfare measures?," IZA World of Labor, Institute of Labor Economics (IZA), pages 128-128, March.
    10. Renner, Sebastian & Lay, Jann & Schleicher, Michael, 2017. "The Effects of Energy Price Changes: Heterogeneous Welfare Impacts, Energy Poverty, and CO2 Emissions in Indonesia," GIGA Working Papers 302, GIGA German Institute of Global and Area Studies.
    11. Müller, Kai-Uwe, 2014. "Analyzing economic policies that affect supply and demand: a structural model of productivity, labor supply and rationing," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100471, Verein für Socialpolitik / German Economic Association.
    12. Echeverría, Lucía & Menon, Martina & Perali, Federico & Berges, Miriam, 2019. "Intra-household inequality and child welfare in Argentina," Nülan. Deposited Documents 3051, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    13. de Boer, Henk-Wim & Jongen, Egbert L. W., 2020. "Analysing Tax-Benefit Reforms in the Netherlands: Using Structural Models and Natural Experiments," IZA Discussion Papers 12892, Institute of Labor Economics (IZA).
    14. Martina Menon & Federico Perali & Luca Piccoli, 2018. "Collective consumption: an application to the passive drinking effect," Review of Economics of the Household, Springer, vol. 16(1), pages 143-169, March.
    15. Brannlund, Runar & Nordstrom, Jonas, 2004. "Carbon tax simulations using a household demand model," European Economic Review, Elsevier, vol. 48(1), pages 211-233, February.
    16. José Labeaga & Xisco Oliver & Amedeo Spadaro, 2008. "Discrete choice models of labour supply, behavioural microsimulation and the Spanish tax reforms," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(3), pages 247-273, September.
    17. Fischer, Benjamin & Jessen, Robin & Steiner, Viktor, 2019. "Work incentives and the cost of redistribution via tax-transfer reforms under constrained labor supply," Discussion Papers 2019/10, Free University Berlin, School of Business & Economics.
    18. Xiaodong Gong & Arthur van Soest, 2002. "Family Structure and Female Labor Supply in Mexico City," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 163-191.
    19. Juan Carlos Caro & Shu Wen Ng & Ricardo Bonilla & Jorge Tovar & Barry M Popkin, 2017. "Sugary drinks taxation, projected consumption and fiscal revenues in Colombia: Evidence from a QUAIDS model," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-16, December.
    20. Cash, Sean B. & Goddard, Ellen W., 2006. "New Directions in Consumer Behaviour Research," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 7, pages 1-10, August.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

    Statistics

    Access and download statistics

    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:hal:journl:hal-03541872. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.