Evaluating Alternative Tax and Transfer Schemes with Endogenous Earnings

John Creedy

Oxford Economic Papers, 1997, vol. 49, issue 1, 43-56

Abstract: This paper compares a linear income tax with a modified minimum income guarantee that uses means testing. The schemes are evaluated in terms of both their ability to reduce poverty and their influence on social welfare (defined in terms of individuals' utilities). The comparisons involve a lexicographic approach whereby poverty reduction is regarded as the primary objective. Using a range of poverty measures and social welfare functions, simulations show that the linear income tax dominates the minimum income guarantee. Copyright 1997 by Royal Economic Society.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819970 ... 0.CO%3B2-1&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:oup:oxecpp:v:49:y:1997:i:1:p:43-56

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().