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Quantitative evidence on the welfare effects of home sector fiscal policy

Kelly S. Ragan

Economics Letters, 2013, vol. 118, issue 2, 400-403

Abstract: A home production model that explicitly accounts for taxes and public expenditures on day-care and elder-care, substitutes for work households perform at home, is used to evaluate the welfare implications of alternative public expenditure policies. Both subsidy and workfare policies are welfare improving relative to a model where tax revenues are rebated lump sum. The welfare gains from optimal home sector policy design can be large.

Keywords: Home production; Public expenditures; Subsidy; Workfare (search for similar items in EconPapers)
JEL-codes: J22 E26 E62 (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:400-403