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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
The paper compares the impact of corporate taxation and social insurance on foreign direct investment (FDI) and unemployment. Four main results are derived: (i) the optimal size of the welfare state depends on the degree of risk-aversion and the unemployment rate as a measure of labor income...
Persistent link: https://www.econbiz.de/10010264567
The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more extensive reform programs. We argue that the heart of...
Persistent link: https://www.econbiz.de/10010273118
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
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
This chapter examines the role of altruistic motives in the economic analysis of public social transfers, both from a positive and from a normative point of view. The positive question is to know whether we can fully neglect altruistic considerations to explain the development or sustainability...
Persistent link: https://www.econbiz.de/10014023654
This chapter reviews the theory of the voluntary public and private redistribution of wealth elaborated by economic analysis in the last forty years or so. The central object of the theory is altruistic gift-giving, construed as benevolent voluntary redistribution of income or wealth. The theory...
Persistent link: https://www.econbiz.de/10014023678
Altruism, giving and pro-social conduct, and reciprocity, are the basis of the existence and performance of societies, through their various occurrences: in families; among the diverse motives of the political and public sector; as the general respect and moral conduct which permit life in...
Persistent link: https://www.econbiz.de/10014023682
When deciding on the social desirability of public investment, the cost of a project is sometimes adjusted by a factor known as the Marginal Cost of Public Funds (MCPF) which captures the cost of raising public funds through distortionary taxation. However, there is no scholarly consensus on...
Persistent link: https://www.econbiz.de/10014234016
This paper aims to assess tax policy reforms that can sustain universal basic income programs and foster long-term growth and welfare in a currency union that faces fiscal rule constraints and inequality. To address this ongoing government and economics' debate, we developed a Dynamic Stochastic...
Persistent link: https://www.econbiz.de/10014414077