This paper presents a unified parametric approach to estimate the impact of taxes and transfers on the participation decision. We extend existing structural form methodologies by considering the effect of both taxes and transfers. In our framework, participation probabilities are determined by...

We present a new general-equilibrium behavioural microsimulation model designed to assess long-run macroeconomic and fiscal consequences of reforms to the tax and transfer system. General-equilibrium feedback effects are simulated by embedding microsimulation in a parsimonious macro model of a...

We estimate a double hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation, and an unreported cash supplement). We estimate the probability of under-reporting for...

It is well-known that men and women segregate by occupation, but less is known about how they segregate by task within occupation. We show that the tasks performed by women are less skill intensive on the average than those performed by men having the same occupation. Neither demographic...

We propose a new method to test for the existence of the bandwagon effect, the notion that voters are more likely to vote for a given candidate if they expect the candidate to win. Two-round election systems with a large number of single-member districts offer an ideal testing ground because...

An agreement about a lower bound for admissible tax rates can reduce the equilibrium tax rate (and thus welfare) in tax competition among fully symmetric countries. This is shown in an infinitely repeated game where the stage game describes the standard tax competition model with source-based...

Christopher D. Carroll is an economics professor at Johns Hopkins University Baltimore and research associate at NBER. He obtained his BA from Harvard University in 1986 and his PhD from MIT in 1990. He first worked as an economist at the Federal Reserve Board and later took a job at Johns...

The paper studies how high-income taxpayers responded to the introduction of the ‘extraordinary tax on individuals’ in Hungary in 2007. The study is based on a panel of tax returns compiled by the Hungarian Tax Authority for the purposes of this study, containing information on 10 percent of...

The paper introduces the possibility of coalition government into the theoretical study of political accountability and analyzes the accountability of coalitions as a problem of team production. It is shown that coalition governments can be held accountable in the presence of an electoral...