The Impact of Tax-Benefit Reforms on Labor Supply in a Simulated Nash-bargaining Framework

Olivier Bargain and Nicolas Moreau

Journal of Family and Economic Issues, 2013, vol. 34, issue 1, 77-86

Abstract: Several theoretical contributions have suggested to model household behavior as a Nash-bargaining game. Yet very few attempts have been made to operationalize cooperative models of labor supply for policy analysis. In this paper, we implement a Nash-bargaining model with external threat points (divorce) into the microsimulation of tax-benefit policy reforms in France. The observation of divorced individuals is used to predict outside options and (some) of the preferences for individuals living in couples. Benchmark simulations are conducted in a way that guarantees consistency with the Nash bargaining setting, regularity conditions and observed behavior. We examine how the labor supply of couples adjusts to shocks on threat points, either hypothetical or generated by a radical tax-benefit reform. Copyright Springer Science+Business Media, LLC 2013

Keywords: Household labor supply; Nash-bargaining model; Tax-benefit reform (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10834-012-9300-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Impact of Tax-Benefit Reforms on Labor Supply in a Simulated Nash-bargaining Framework (2013)
Working Paper: The Impact of Tax-Benefit Reforms on Labor Supply in a Simulated Nash bargaining Framework (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jfamec:v:34:y:2013:i:1:p:77-86

Ordering information: This journal article can be ordered from
http://www.springer. ... es/journal/10834/PS2

DOI: 10.1007/s10834-012-9300-9

Access Statistics for this article

Journal of Family and Economic Issues is currently edited by Joyce Serido

More articles in Journal of Family and Economic Issues from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().