We develop a simulation model of household behaviour in which both the consumption/saving and labour/leisure choices are endogenous. This model is used to explore the effects of the UK and Danish state tax and benefit systems on the labour supply of workers aged 50 or over. We find that, in...

This paper uses a simple model of how households at different points on the income distribution make decisions about saving and labour supply to illustrate some of the problems government faces in designing social security systems. We show simulation results, which highlight the costs and...

This article surveys the literature on education as a matter of public policy. We present international comparisons of expenditure on education and then discuss the contribution of education to economic growth, distinguishing between growth accounting and regression approaches, but concluding...