responses in microsimulation models. The paper focuses attention on two methodologies for modelling labour supply: the discrete … models for policy simulation in terms of producing and interpreting simulation outcomes, outlining an extensive literature of … responses but also for identifying optimal tax-benefit systems, given some of the challenges of the theoretical approach …

An essential difference between the design of the Swedish and the US in-work tax credit systems relates to their … functional forms. Where the US earned income tax credit (EITC) is phased out and favours low and medium earnings, the Swedish … system is not phased out and offers 17 and 7 per cent tax credit for low and medium low incomes and a lump-sum tax deduction …

changes on the intrahousehold allocation of income. We also simulate the consequences of a policy change in the tax system. We … spouses. These differences in outcomes have consequences for the evaluation of policy changes in the tax system and shed light …

I estimate permanent and transitory tax-price and income elasticity of charitable giving in Germany using a rich panel … data of tax return for the years 2001-2006. Income tax reforms were implemented in 2004 and 2005. The results suggest that … the permanent tax-price elasticity varies significantly by income class, ranging from -0.2 for low incomes to -1.6 for …

This paper studies optimal unemployment benefit levels and optimal proportional income tax rates over the business … because the UI system can be used to smooth consumption across different economic states. However, high benefits increase … unemployment. An alternative way to redistribute income is to vary tax rates over the business cycle. In this paper, we develop an …

treatment of families by the aggregate tax and transfer system can be regarded as "fair", we compare the equivalent incomes of … evidence for a privileged treatment of families with children and a low market income due to the earned income tax credit (EIC …), the child tax credit and the supplemental nutrition assistance program (SNAP). If employment taxes are interpreted as …

This paper studies the speed at which workers' pre-tax earnings respond to tax changes along the intensive margin. We … do so in the context of Germany, where a large discontinuity - or notch - in the tax schedule induces sharp bunching in …