Optimal Tax-Transfer Rules under Equilibrium and New Labour Demand Scenarios

Colombino, Ugo; Islam, Nizamul

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223983

Title:

Optimal Tax-Transfer Rules under Equilibrium and New Labour Demand Scenarios

Authors:

Colombino, Ugo
Islam, Nizamul

Year of Publication:

2020

Series/Report no.:

IZA Discussion Papers No. 13541

Publisher:

Institute of Labor Economics (IZA), Bonn

Abstract:

We present an extension of the numerical approach to empirical optimal taxation allowed by a peculiar structure of a microeconometric model of labour supply that includes a representation of the demand side. This makes it possible to identify optimal tax-transfer rules while accounting for equilibrium constraints and to evaluate the effects of exogenous labour demand shocks. We provide illustrative examples using the 2015 EU-SILC data set for Italy.

Subjects:

empirical optimal taxation
microsimulation
microeconometrics
evaluation of tax-transfer rules
equilibrium
labour demand shocks

JEL:

H21
C18

Document Type:

Working Paper

Appears in Collections:

IZA Discussion Papers, IZA – Institute of Labor Economics

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