This paper analyses the effects of a social assistance reform in Germany. In contrast to studies which are based on microsimulation methods we use a computable general equilibrium model which incorporates a discrete choice model of labour supply to simulate a variety of reform scenarios. The...

This paper studies the impact of tax incentives on economic behavior within the household. We focus on an Italian tax policy that grants a large tax credit to main earners if their spouses, designated as “dependent spouses” by the tax law, report income below a certain threshold. Combining a...