IDEAS home Printed from https://ideas.repec.org/p/mod/depeco/0611.html
   My bibliography  Save this paper

The recent reforms of the Italian personal income tax: distributive and efficiency effects

Author

Listed:
  • Massimo Baldini

    ()

  • Daniele Pacifico

    ()

Abstract

The aim of this paper is the study of three reforms of the Italian personal income tax that have been implemented over the past six years. The analysis is carried out in three stages. In the first stage we study their distributive effects using a static microsimulation model. In the second stage we focus on the labour supply effects by means of a structural microeconometric model of household labour supply; finally, we analyze the distributive effects of the reforms accounting for labour supply reactions. Our findings confirm that the extension of the no-tax area had positive effects in terms of both redistribution and work incentives, while greater benefits for households with children improved income distribution but with negative effects on the labour supply of married women,

Suggested Citation

  • Massimo Baldini & Daniele Pacifico, 2009. "The recent reforms of the Italian personal income tax: distributive and efficiency effects," Department of Economics 0611, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
  • Handle: RePEc:mod:depeco:0611
    as

    Download full text from publisher

    File URL: http://www.dep.unimore.it/materiali_discussione/0611.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daniela Del Boca & Daniela Vuri, 2005. "Labor Supply and Child Care Costs: The Effect of Rationing," Labor and Demography 0510016, EconWPA.
    2. Claudio De Vincenti & Ruggero Paladini & Corrado Pollastri, 2005. "For a Welfare-Oriented Taxation Reform in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(2-3), pages 189-213, November.
    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. Flaviana Palmisano & Dirk Van de gaer, 2016. "History-dependent growth incidence: a characterization and an application to the economic crisis in Italy," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 585-603.
    2. Daniele Pacifico, 2013. "On the role of unobserved preference heterogeneity in discrete choice models of labour supply," Empirical Economics, Springer, vol. 45(2), pages 929-963, October.
    3. Bessho, Shun-ichiro & Hayashi, Masayoshi, 2014. "Intensive margins, extensive margins, and spousal allowances in the Japanese system of personal income taxes: A discrete choice analysis," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 162-178.
    4. Shun-ichiro Bessho & Masayoshi Hayashi, 2015. "Should the Japanese tax system be more progressive? An evaluation using the simulated SMCFs based on the discrete choice model of labor supply," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(1), pages 144-175, February.
    5. Pacifico, Daniele, 2009. "Modelling Unobserved Heterogeneity in Discrete Choice Models of Labour Supply," MPRA Paper 19030, University Library of Munich, Germany.
    6. CPB Netherlands & CAPP, 2013. "Study on the Impacts of Fiscal Devaluation," Taxation Papers 36, Directorate General Taxation and Customs Union, European Commission.
    7. Figari, Francesco, 2011. "From housewives to independent earners: can the tax system help Italian women to work?," ISER Working Paper Series 2011-15, Institute for Social and Economic Research.
    8. Daniele Pacifico, 2014. "On the role of unobserved preference Heterogeneity in discrete choice Models of labour supply," Working Papers 6, Department of the Treasury, Ministry of the Economy and of Finance.

    More about this item

    Keywords

    microsimulation; labour supply; income distribution; income tax;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mod:depeco:0611. 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: (Sara Colombini). General contact details of provider: http://edirc.repec.org/data/demodit.html .

    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 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.

    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.