This paper follows the theory of optimal taxation and the goal is to identify a tax/benefit design that maximizes … in the first stage, and the second stage identifies the tax/benefit system that maximize the social welfare function. Our … study deviates from the mainstream literature as the first stage is based on a static micro simulation model with behavioral …

The purpose of SWEtaxben is to evaluate the impact of changes in the tax/benefit systems on households as well as the … central governmental budget. Relating to the micro simulation literature this model can be labeled a static micro simulation … reinforced in 2008 and 2009. The key characteristic of this reform is an in-work tax credit and decreased state tax rate …

In-work benefits are becoming an increasingly relevant labour market policy, gradually expanding in scope and … geographical coverage. This paper investigates the equilibrium impact of in-work benefits and contrasts it with the traditional … of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which …

In October 2007 France introduced an exemption on the income tax and social security contributions that applied to … in order to optimize their tax situation, since the hours they work are difficult to verify …

Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind … equilibrium setting, the underlining mechanism works through wage moderation and job creation. The benefits make it more important …

Does tax evasion run in the family? To answer this question, we study the case of the commuter tax allowance in Austria … compliance behavior at the individual level across two generations. To identify the intergenerational causal effect in tax …

The Earned Income Tax Credit (EITC) is a central component of the U.S. safety net, benefiting about 27 million families … being obese by 1.0 percentage point between ages 22 and 27. Direct program transfers, increases in pre-tax family earnings …

The Earned Income Tax Credit (EITC) is the single most important transfer program in place in the United States. An …

We develop a behavioural micro simulation model (LuxTaxBen) that contains very precise information on income tax rules … model has been built specifically for analysing the Luxembourgish tax-transfer system whereby one can generate disposable … conditional on labour supply while income tax rules and the various welfare benefit-levels are complicated functions of earned and …

taxation. Building on the conceptual framework of Chetty (2009), we show that this assertion does no longer hold for tax … systems with deduction possibilities if (i) deductions generate externalities and (ii) deductions are responsive to tax rate … changes. While the first condition should arguably hold for almost any imaginable tax deduction, we provide a thorough …