| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP5620 |
| DP5620 A Parametric Estimation Method for Dynamic Factor Models of Large Dimensions | |
| Massimiliano Marcellino; George Kapetanios | |
| 发表日期 | 2006-04-04 |
| 出版年 | 2006 |
| 语种 | 英语 |
| 摘要 | This paper extends the theory and measurement of the marginal cost of public funds (MCF) to account for labour force participation responses. Our work is motivated by the emerging consensus in the empirical literature that extensive (participation) responses are more important than intensive (hours-of-work) responses. In the modelling of extensive responses, we argue that it is crucial to account for the presence of non-convexities created by fixed costs of work. In a non-convex framework, tax and transfer reforms give rise to discrete participation responses generating first-order effects on government revenue and the marginal cost of funds. Based on analytical expressions accounting for both margins of labour supply response, and allowing for heterogeneity in productivities and preferences, we calculate MCF for 15 European countries using micro data on taxes and benefits for each country. The MCF estimates depend crucially on the country under consideration and on the properties of the tax reform. In general, we find that extensive responses have very important effects on MCF, especially in the Scandinavian and the Central/Northern Continental European countries where participation tax rates are very high at the bottom of the distribution resulting from generous out-of-work benefits along with high tax rates on workers. For these countries, the estimated MCFs centre around 2 in the case of proportional tax changes. |
| 主题 | Public Economics |
| 关键词 | Labour supply Intensive and extensive responses Fixed work costs Taxation Income transfers Marginal welfare costs |
| URL | https://cepr.org/publications/dp5620 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/534469 |
| 推荐引用方式 GB/T 7714 | Massimiliano Marcellino,George Kapetanios. DP5620 A Parametric Estimation Method for Dynamic Factor Models of Large Dimensions. 2006. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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