The tax treatment of housing has been a subject of continuing debate in the UK, as in many other countries. Economists have often pointed to the exclusion of imputed income from owner-occupation from the income tax base as a major distortion. As a result, a tax on the imputed income of...

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...