The effect of income taxation on consumption and labor supply

• 成果类型: Article
• 署名作者: Ziliak, JP; Kniesner, TJ
• 署名单位: University of Kentucky; Syracuse University
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/491611
• 发表日期: 2005
• 页码: 769-796
• 关键词: marginal welfare cost; life-cycle; moments estimators; generalized-method; social insurance; tax-reform; panel-data; MODEL; RISK; tests

摘要

We estimate the incentive effects of income taxation in a life-cycle model of consumption and labor supply without intratemporal strong separability. We find that consumption and hours worked are direct complements in utility; both increase with a compensated increase in the net wage. The compensated net wage elasticity is about 0.3, nearly double estimates for U. S. men from a linear labor supply specification. Estimated intertemporal elasticities indicate significant intertemporal smoothing of utility. The estimated marginal welfare cost of government revenue is 6%-20%, which is about half the estimated welfare cost when additivity between consumption and leisure is incorrectly imposed.