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Quadratic Utility, Labour Supply and The Welfare Effects of Tax Changes

Author

Listed:
  • Creedy, J.

Abstract

1. Introduction 2. Labour Supply 3. The Slutsky Condition 4. Welfare Changes 4.1 The Expenditure Function 4.2 Compensating and Equivalent Variations 5. Numerical Examples 5.1 The Tax System 5.2 Utility and Labour Supply 6. Conclusions

Suggested Citation

  • Creedy, J., 2001. "Quadratic Utility, Labour Supply and The Welfare Effects of Tax Changes," Department of Economics - Working Papers Series 774, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:774
    Note: This paper has now been published in: Creedy, J. (2001), Quadratic Utility, Labour Supply and the Welfare Effects of Tax Changes, Australian Journal of Labour Economics, 4, no.4, pp. 272-280.
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    File URL: http://www.economics.unimelb.edu.au/research/2000-2001.html
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    Cited by:

    1. John Creedy & Nicolas Hérault & Guyonne Kalb, 2007. "Comparing Welfare Change Measures with Income Change Measures in Behavioural Policy Simulations," Melbourne Institute Working Paper Series wp2007n21, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Creedy, J. & Kalb, G., 2001. "Measuring Welfare Changes With Nonlinear Budget Constraints in Continuous and Discrete Hours Labour Supply Models," Department of Economics - Working Papers Series 799, The University of Melbourne.

    More about this item

    Keywords

    LABOUR ; SUPPLY ; TAXES;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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