This paper extends behavioural microsimulation modelling so that third round effectsof a policy change can be simulated. The first round effects relate to fixed hoursof work, while second round effects allow for changes in desired hours of work atunchanged wages. These allow for endogenous...

The purpose of this paper is to extend the analysis of built-in ‡exibilityto various forms of consumption taxation. This is useful in view of theextensive use of indirect taxes. Section 2 begins with basic de…nitions anda discussion of income taxation, concentrating on the multi-step case....