Evaluating the Move to a Linear Tax System in Germany and Other European Countries

Denis Beninger (), Olivier Bargain, Miriam Beblo, Richard Blundell (), Raquel Carrasco (), Marie-Concetta Chiuri, Francois Laisney, Valérie Lechene, Ernesto Longobardi, Nicolas Moreau, Michal Myck, Javier Ruiz-Castillo and Frederic Vermeulen
Additional contact information
Denis Beninger: Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - University of Mannheim = Universität Mannheim
Miriam Beblo: Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - University of Mannheim = Universität Mannheim
Marie-Concetta Chiuri: Centre for Household, Income, Labour and Demographic Economics (CHILD) - Centre for Household, Income, Labour and Demographic Economics (CHILD), UNIBA - Università degli studi di Bari Aldo Moro = University of Bari Aldo Moro
Valérie Lechene: IFS - Laboratory of the Institute for Fiscal Studies - Institute for Fiscal Studies, University of Oxford
Ernesto Longobardi: UNIBA - Università degli studi di Bari Aldo Moro = University of Bari Aldo Moro

Post-Print from HAL

Abstract: This paper proposes a comparison of the results of tax policy analysis obtained on the basis of unitary and collective representations of the household. We first generate labour supplies consistent with the collective rationality, by use of a model calibrated on microdata as described in Vermeulen et al. [Collective Models of Household Labor Supply with Nonconvex Budget Sets and Nonparticipation: A Calibration Approach (2006)]. A unitary model is then estimated on these collective data and unitary and collective responses to a tax reform are compared. We focus on the introduction of linear taxation in Germany. The exercise is replicated for other European countries and other topical reforms. Distortions due to the use of a unitary model turn out to be important in predicting labour supply adjustments, in the design of tax revenue neutral reforms, and in predicting a reform's welfare implications.

Keywords: Household labour supply; Intrahousehold allocations; Tax reform (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Published in Review of Economics of the Household, 2008, 4, pp.159-180. ⟨10.1007/s11150-006-0004-5⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Evaluating the Move to a Linear Tax System in Germany and Other European Countries (2006)
Working Paper: Evaluating the move to a linear tax system in Germany and other European countries (2006)
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:hal:journl:hal-00279206

DOI: 10.1007/s11150-006-0004-5

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().