Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980 - 1991

Sören Blomquist (), Matias Eklöf and Whitney Newey ()
Additional contact information
Sören Blomquist: Department of Economics, Postal: Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden, http://www.nek.uu.se/faculty/blomquist/index.html
Whitney Newey: Department of Economics, Postal: Massachusetts Institute of Technology, Cambridge, MA 02139-4307, USA

No 1997:29, Working Paper Series from Uppsala University, Department of Economics

Abstract: 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.

Keywords: Nonparametric estimation; labor supply; tax revenues; income distribution (search for similar items in EconPapers)
JEL-codes: C14 D31 H31 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm, nep-mic, nep-pbe and nep-pub
Date: 1997-12-04
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Published in Journal of Public Economics, 2001, pages 543-568.

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Related works:
Working Paper: Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980 - 1991 (1998)
Working Paper: Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980-1991 (1997)
Journal Article: Tax reform evaluation using non-parametric methods: Sweden 1980-1991 (2001)
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Persistent link: http://EconPapers.repec.org/RePEc:hhs:uunewp:1997_029

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