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There are two important problems in welfare benefit programs: the prevalence of welfare fraud, in which ineligible … coexistence of welfare fraud and incomplete take-up is unstable in the model of statistical discrimination view welfare stigma … the tax-payer resentment view welfare stigma suggested by Besley and Coate (1992). We find multiple stable equilibria in …
Persistent link: https://www.econbiz.de/10012299749
survey data shows the wide-ranging feasibility of simulating tax and benefit instruments, though more details are available …
Persistent link: https://www.econbiz.de/10011484460
A substantial literature addresses the design of transfer programs and policies, including the negative income tax, other means-tested transfers, the earned income tax credit, categorical assistance, and work inducements. This work is largely independent of that on the optimal nonlinear income...
Persistent link: https://www.econbiz.de/10012733176
This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be...
Persistent link: https://www.econbiz.de/10012782613
There is a growing debate on the relative merits of universal and targeted social assistancetransfers in achieving income redistribution objectives. While the benefits of targeting areclear, i.e., a larger poverty impact for a given transfer budget or lower fiscal cost for a givenpoverty impact,...
Persistent link: https://www.econbiz.de/10012828240
Wage subsidies can be provided directly to the worker, as in the federal Earned Income Tax Credit (EITC) program. They can also be provided indirectly by subsidizing the employer; by reducing the cost of labor, employers are induced to offer higher wages. The standard literature stipulates that...
Persistent link: https://www.econbiz.de/10011701529
Specialized theoretical and empirical research should in principle be embedded in a unified framework that identifies the relevant interactions among different phenomena, enables an appropriate matching of policy instruments to objectives, and grounds normative analysis in individuals' utilities...
Persistent link: https://www.econbiz.de/10012174286
Wage subsidies can be provided directly to the worker, as in the federal Earned Income Tax Credit (EITC) program. They can also be provided indirectly by subsidizing the employer; by reducing the cost of labor, employers are induced to offer higher wages. The standard literature stipulates that...
Persistent link: https://www.econbiz.de/10012949108
We study the optimal design of means-tested transfers and progressive income taxes. In a simple analytical model, we demonstrate an optimally negative relation between transfers and income-tax progressivity due to efficiency and redistribution concerns. In a rich dynamic model, we quantify the...
Persistent link: https://www.econbiz.de/10014077963
individuals unobservable, and compare the resulting benefit schedules with those of programs found in the United States since … Welfare Reform (1996). We find that optimal programs closely resemble a Negative Income Tax with a Benefit Reduction rate that …
Persistent link: https://www.econbiz.de/10014117189