Some Effects of Basic Income on Economic Variables

Meghnad Desai and Ana Helena Palermo
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Meghnad Desai: London School of Economics
Ana Helena Palermo: University of Freiburg

Chapter Chapter 6 in The Palgrave International Handbook of Basic Income, 2019, pp 91-110 from Palgrave Macmillan

Abstract: Abstract Desai and Palermo discuss the effects of Basic Income on selected economic variables. The discussion has a theoretical basis and uses a microeconomic approach. The effects that the chapter studies concern both individual and aggregated perspectives. Consumption at the individual level, paid work, unpaid work, and leisure, belong to the first group; and aggregated consumption, Gross Domestic Product, and income distribution, belong to the second. The chapter discusses which effects a Basic Income funded by a labour income tax would have, and which an externally financed Basic Income would have, on some aspects of these variables. A classification of Basic Incomes at three different levels is used to guide the analysis: the ‘partial’, the ‘freedom-enhancing’, and the ‘emancipatory’ Basic Incomes.

Date: 2019
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DOI: 10.1007/978-3-030-23614-4_6

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