Labour Supply Incentives in Alternative Tax and Transfer Schemes: A Diagrammatic Introduction

John Creedy

No 03/08, Treasury Working Paper Series from New Zealand Treasury

Abstract: The aim of this paper is to illustrate some of the complexities involved in modelling the incentive effects of taxes and transfers, using only basic diagrammatic methods. It describes a range of diagrams which are helpful in thinking about the design of tax and transfer systems and their potential effects on labour supply behaviour. Emphasis is given to the role of highly nonlinear budget constraints and the resulting wide range of labour supply responses.

Keywords: Labour supply; budget constraints, taxes and transfers (search for similar items in EconPapers)
JEL-codes: H31 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2003-03
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:03/08

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