This paper explores the use of a loglinear tax and transfer function, displaying increasing marginal and average tax rates along with a means-tested transfer payment. The two parameters are a break-even income threshold, where the average tax rate is zero, and a tax parameter equivalent to the...

This paper investigates, first, how allowance for subsistence activities, or home production, affects the standard results in models involving the majority choice of the tax rate in a flat tax – basic income scheme. The paper extends the analysis of home production to choices regarding the...

This paper describes microsimulation modelling in non-technical terms and explains what can be achieved with microsimulation modelling in general, and the Melbourne Institute Tax and Transfer Simulator (MITTS) in particular. The focus is on behavioural microsimulation modelling, which takes...

This paper compares labour supply behaviour under a uniform education voucher system with one involving a means-tested scheme in which the voucher is subject to a taper or withdrawal rate as parental gross income increases. Particular attention is given to the implications of nonlinear budget...

This paper considers the choice of linear income tax rate in both majority voting and social welfare maximising contexts. Although the basic problem in each case - of finding the most preferred tax for the median voter and the welfare maximising tax for an independent judge or decision-maker -...