Tax Reform Evaluation Using Nonparametric Methods: Sweden 1980 - 1991 / Soren Blomquist, Matias Eklof, Whitney Newey.

Format:

Book

Author/Creator:

Blomquist, Soren.

Contributor:

National Bureau of Economic Research.

Eklof, Matias.

Newey, Whitney.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6759.

NBER working paper series no. w6759

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Tax Reform Evaluation Using Nonparametric Methods

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1998.

Summary:

This paper evaluates the tax reforms carried out in Sweden between 1980 and 1991. We use a recently developed nonparametric estimation technique to account for labor supply responses. We decompose the tax returns to study how the separate components influence hours of work, tax revenues distribution. The results indicate that the reform was underfinanced and that the increased indirect taxation and redesigned transfer system almost eliminated the positive effects on hours of work due to the decreased marginal taxes on labor income. Further the predictions of a parametric estimated labor supply model. The responses of the parametric model is almost twice the size of the nonparametric.

Notes:

Print version record

October 1998.