The economics of Citizens Basic Income

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Chapter 5 in A Modern Guide to Citizen’s Basic Income, 2020, pp 69-90 from Edward Elgar Publishing

Abstract: Chapter 5 employs a classical economic model to study employment incentives in relation to both current tax and benefits systems and a system including a Citizen’s Basic Income. The model is then questioned; research on consumption choices in relation to different levels of Citizen’s Basic Income and different funding methods is discussed; and whether a Citizen’s Basic Income would have a subsidy effect on wage levels is debated. A discussion of ‘club theory’ concludes that a foundational income should be treated as a public good and not as a club or private good. Differences between the apparently similar Negative Income Tax and Citizen’s Basic Income are discussed; relationships between inequality, tax, benefits, and efficiency, are explored; and the relationship between Citizen’s Basic Income and climate change is debated.

Keywords: Economics and Finance; Politics and Public Policy Social Policy and Sociology (search for similar items in EconPapers)
Date: 2020
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