Tax-benefit systems in Europe and the US: Between equity and efficiency


Bargain, Olivier ; Dolls, Mathias ; Neumann, Dirk ; Peichl, Andreas ; Siegloch, Sebastian



URL: http://ftp.iza.org/dp5440.pdf
Additional URL: https://www.researchgate.net/publication/228285192...
Document Type: Working paper
Year of publication: 2011
The title of a journal, publication series: IZA Discussion Papers
Volume: 5440
Place of publication: Bonn
Publishing house: Forschungsinstitut zur Zukunft der Arbeit (IZA)
Related URLs: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1745715
Publication language: English
Institution: School of Law and Economics > VWL, Soziale Sicherung (Siegloch 2018-)
School of Law and Economics > VWL, Quantitative Finanzwissenschaft (Peichl 2013-2017)
Subject: 330 Economics
Classification: JEL: H11 , H21 , D63 , C63,
Keywords (English): social preferences , redistribution , optimal income taxation , labor supply
Abstract: Whether observed differences in redistributive policies across countries are the result of differences in social preferences or efficiency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor supply elasticities on microdata and adopt an inverted optimal tax approach to characterize the redistributive preferences embodied in the welfare systems of 17 EU countries and the US. Implicit social welfare functions are broadly compatible with the fiction of an optimizing Paretian social planner. Some exceptions due to generous demogrant transfers are consistent with the ignorance of behavioral responses by some European governments and are partly corrected by recent policy developments. Heterogeneity in leisure-consumption preferences somewhat affect the international comparison in degrees of revealed inequality aversion, but differences in social preferences are significant only between broad groups of countries.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.




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Bargain, Olivier ; Dolls, Mathias ; Neumann, Dirk ; Peichl, Andreas ; Siegloch, Sebastian (2011) Tax-benefit systems in Europe and the US: Between equity and efficiency. IZA Discussion Papers Bonn 5440 [Working paper]


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