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dc.contributor.authorBargain, Olivieren_US
dc.date.accessioned2010-12-16T13:35:32Z-
dc.date.available2010-12-16T13:35:32Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/43345-
dc.description.abstractDiscrete choice models of labor supply easily account for nonlinearty and nonconvexity in budget sets caused by tax-benefit systems. As a result, they have become very popular for ex ante evaluations of policy reforms. In this paper, we question whether the degree of flexibility and the implicit household representation in these models are satisfying when confronted to the data. First, we show that attempts to interpret discrete models structurally lead to unnecessary parametric restrictions in most studies. We suggest instead a fully flexible model that retains usual assumptions on economic rationality except regularity conditions an leisure. Indeed, coefficients may account for both tastes and costs of work, possibly making 'preferences' appear nonconvex. Second, we show that the static unitary representation, implicit in most tax policy analyses, is rejected against a more general model with price- and income- dependent preferences. The latter can be rationalized in terms of collective or intertemporal models and offers promising perspectives in these directions. Simulations show that the magnitude of predicted labor supply responses to tax-benefit reforms is sensitive to the underlying household representation.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesWorking paper series // UCD Centre for Economic Research 2007/11en_US
dc.subject.jelC25en_US
dc.subject.jelC52en_US
dc.subject.jelH31en_US
dc.subject.jelJ22en_US
dc.subject.ddc330en_US
dc.subject.keywordmultionominal logiten_US
dc.subject.keywordhousehold labor supplyen_US
dc.subject.keywordtax reformen_US
dc.subject.keywordunitary modelen_US
dc.subject.keywordcollective modelen_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwHaushaltsökonomiken_US
dc.subject.stwFamilienbesteuerungen_US
dc.subject.stwSchätzungen_US
dc.subject.stwTheorieen_US
dc.subject.stwFrankreichen_US
dc.subject.stwDiskrete Entscheidungen_US
dc.titleOn modeling household labor supply with taxationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn557441412en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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