Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980 - 1991
This paper evaluates the tax reforms carried out in Sweden between 1980 and 1991. We use a recently developed nonparametric labor supply function to account for the behavorial responses of the taxed individuals. We decompose the tax reform to study how the separate components influence hours of work, tax revenues and income distribution. The results indicate that the reform was underfinanced and that the increased indirect taxation and redesigned transfer system almost eliminated the positive effects on hours of work due to the decreased marginal taxes on labor income. Further, we compare the results to the predictions of a parametric estimated labor supply model. The responses of the parametric model is almost twice the size of the nonparametric.
|Date of creation:||04 Dec 1997|
|Date of revision:|
|Publication status:||Published in Journal of Public Economics, 2001, pages 543-568.|
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- Aronsson,T. & Palme,M., 1994.
"A Decade of Tax and Benefit Reforms in Sweden -Effects on Labour Supply, Welfare and Inequality,"
3, Uppsala - Working Paper Series.
- Aronsson, Thomas & Palme, Marten, 1998. "A Decade of Tax and Benefit Reforms in Sweden: Effects on Labour Supply, Welfare and Inequality," Economica, London School of Economics and Political Science, vol. 65(257), pages 39-67, February.
- Aronsson, Thomas & Palme, Mårten, 1994. "A Decade of Tax and Benefit Reforms in Sweden - Effects on Labour Supply, Welfare and Inequality," SSE/EFI Working Paper Series in Economics and Finance 18, Stockholm School of Economics.
- Agell, J & Englund, P & Sodersten, J, 1996.
"Tax reform of the Century - the Swedish Experiment,"
1996-13, Uppsala - Working Paper Series.
- Agell, Jonas & Englund, Peter & Sodersten, Jan, 1996. "Tax Reform of the Century -- the Swedish Experiment," National Tax Journal, National Tax Association, vol. 49(4), pages 643-64, December.
- Agell, Jonas & Englund, Peter & Södersten, Jan, 1996. "Tax Reform of the Century - The Swedish Experiment," Working Paper Series 1996:13, Uppsala University, Department of Economics.
- Hausman, Jerry A & Newey, Whitney K, 1995.
"Nonparametric Estimation of Exact Consumers Surplus and Deadweight Loss,"
Econometric Society, vol. 63(6), pages 1445-76, November.
- Hausman, J.A. & Newey, W.K., 1992. "Nonparametric Estimation of Exact Consumers Surplus and Deadweight Loss," Working papers 93-2, Massachusetts Institute of Technology (MIT), Department of Economics.
- Blomquist, N. Soren, 1983. "The effect of income taxation on the labor supply of married men in Sweden," Journal of Public Economics, Elsevier, vol. 22(2), pages 169-197, November.
- Agell, S.A. & Meghir, C., 1995. "Male Labour Supply in Sweden : Are Incentives Important?," Papers 12, Uppsala - Working Paper Series.
- N. S. Blomquist & U. Hansson-Brusewitz, 1990. "The Effect of Taxes on Male and Female Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 317-357.
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