Taxation, income distribution and individual decisions
The course introduces students to the evaluation of tax-benefit reforms on income distribution and individual decisions (mainly related to labour supply) by using microeconometric models.
The first part of the course will familiarize the students with the microsimulation models commonly used to ex-ante evaluate tax-benefit policies and the approaches to analyze income distribution and re-distribution.
The second part of the course will review the theory of labour supply, based on the assumption that individuals maximize their utility under the budget constraints given by the tax-benefit system, family characteristics, and labour market conditions. This approach provides a valuable framework for thinking about labour supply issues, in particular the effects of government social welfare policies on work incentives.
The third part focuses on applied estimation of labour supply decisions based on the random utility models (i.e. structural microeconometric models) focusing on limitations and advantages of such modelling approaches.
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