Welfare and Basic Income: Theoretical Implication in The Slemrod / Work-Leisure Model, Graphical Interpretation

Ivaylo Beev () and Yanko Hristozov
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Ivaylo Beev: Department of Economics, University of National and World Economy, Sofia, Bulgaria

Finance, Accounting and Business Analysis, 2020, vol. 2, issue 1, 35-41

Abstract: The present study addresses the problem of basic income (BI), in its two varieties, as universal BI (UnBI) and as unconditional BI (UBI), with a view to the effect on individuals' well-being. For this purpose, Slemrod's general model was adapted and a graphical interpretation based on the standard leisure-time model was made. The use of the specific toolkit of ordinal utility theory makes it possible to identify an unexpected "externalities" - the emergence of a personal and social dilemma that generates crowding out-effect, which is able to eliminate the beneficial effects on the well-being of the introduction of BI into any of its forms, whether universal or unconditional. In this context, a proposal has been made (de lege ferenda), on the adaptation of the structure of the tax system that must incorporate the taxation of robotic labor: to successfully implement the BI conception.

Keywords: Basic income; Slemrod; robotic-taxation; welfare (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aan:journl:v:2:y:2020:i:1:p:35-41

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