Optimal tax-transfer rules under equilibrium and new labour demand scenarios

Authors

Publication Date

Jul 2020

Summary

We present an extension of the numerical approach to empirical optimal taxation allowed by a peculiar structure of a microeconometric model of labour supply that includes a representation of the demand side. This makes it possible to identify optimal tax-transfer rules while accounting for equilibrium constraints and to evaluate the effects of exogenous labour demand shocks. We provide illustrative examples using the 2015 EU-SILC data set for Italy.

Publication type

Research Paper

Series Number

13541

Links

http://ftp.iza.org/dp13541.pdf

Cid:526290

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