EconPapers    
Economics at your fingertips  
 

Aggregating labour supply and feedback effects in microsimulation

John Creedy and Alan Duncan ()

No W01/24, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper extends behavioural microsimulation modelling so that third round effects of a policy change can be simulated. The first round effects relate to fixed hours of work, while second round effects allow for changes in desired hours of work at unchanged wages. These allow for endogenous changes to the distribution of wage rates resulting from the labour supply responses to tax changes. This is achieved using the concept of an aggregate ?upply response schedule? which identifies the extent to which average labour supply responds to a proportional change in wage rates. The third round effect is obtained after re-running a microsimulation model with a suitable modification to individuals' wage rates. The method is illustrated using the MITTS behavioural microsimulation model.

Date: 2001-11-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.ifs.org.uk/wps/wp0124.pdf (application/pdf)

Related works:
Journal Article: Aggregating Labour Supply and Feedback Effects in Microsimulation (2005)
Working Paper: Aggregating Labour Supply and Feedback Effects in Microsimulation (2001) Downloads
Working Paper: AGGREGATING LABOUR SUPPLY AND FEEDBACK EFFECTS IN MICROSIMULATION (2001) Downloads
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:ifs:ifsewp:01/24

Ordering information: This working paper can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE

Access Statistics for this paper

More papers in IFS Working Papers from Institute for Fiscal Studies The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE. Contact information at EDIRC.
Bibliographic data for series maintained by Emma Hyman ().

 
Page updated 2019-10-17
Handle: RePEc:ifs:ifsewp:01/24