TY - JOUR
T1 - A large scale OLG model for the analysis of the redistributive effects of policy reforms
AU - Bucciol, Alessandro
AU - Cavalli, Laura
AU - Fedotenkov, Igor
AU - Pertile, Paolo
AU - Polin, Veronica
AU - Sartor, Nicola
AU - Sommacal, Alessandro
PY - 2017
Y1 - 2017
N2 - 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.
AB - 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.
KW - Computable OLG models
KW - Fiscal policy
KW - Redistribution
KW - Computable OLG models
KW - Fiscal policy
KW - Redistribution
UR - http://hdl.handle.net/10807/83905
U2 - 10.1016/j.ejpoleco.2016.08.005
DO - 10.1016/j.ejpoleco.2016.08.005
M3 - Article
SN - 0176-2680
VL - 48
SP - 104
EP - 127
JO - European Journal of Political Economy
JF - European Journal of Political Economy
ER -