Abstract
The paper presents a large scale overlapping generation model with heterogeneous agents, where the household is the decision unit. We calibrate the model for three European countries – France, Italy and Sweden – which show marked differences in the design of some public programmes. We examine the properties in terms of annual and life cycle redistribution of a number of tax-benefit programmes, by studying the impact of removing from our model economies some or all of them. We find that whether one considers a life cycle or an annual horizon, and whether behavioural responses are accounted for or not, has a large impact on the results. The model may provide useful insights for policy makers on which kind of reforms are more likely to achieve specific equity objectives.
Lingua originale | English |
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pagine (da-a) | N/A-N/A |
Rivista | European Journal of Political Economy |
Volume | 2016 |
DOI | |
Stato di pubblicazione | Pubblicato - 2016 |
Keywords
- Computable OLG models
- Fiscal policy
- Redistribution