Reducing the Excess Burden of Subsidizing the Stork: Joint Taxation, Individual Taxation, and Family Tax Splitting

Meier V, Wrede M (2013)


Publication Language: English

Publication Type: Journal article

Publication year: 2013

Journal

Publisher: Springer Verlag (Germany)

Book Volume: 26

Pages Range: 1195-1207

Journal Issue: 3

DOI: 10.1007/s00148-011-0400-x

Abstract

Analyzing a homogenous household setting with endogenous fertility and endogenous labor supply, we demonstrate that moving from joint taxation to individual taxation and adapting child benefits so as to keep fertility constant entails a Pareto improvement. The change is associated with an increase in labor supply and consumption and a reduction of the marginal income tax, while the child benefit may move in either direction. Similarly, a move from joint taxation to some scheme of family tax splitting increases labor supply and welfare. © 2011 Springer-Verlag.

Authors with CRIS profile

How to cite

APA:

Meier, V., & Wrede, M. (2013). Reducing the Excess Burden of Subsidizing the Stork: Joint Taxation, Individual Taxation, and Family Tax Splitting. Journal of Population Economics, 26(3), 1195-1207. https://doi.org/10.1007/s00148-011-0400-x

MLA:

Meier, Volker, and Matthias Wrede. "Reducing the Excess Burden of Subsidizing the Stork: Joint Taxation, Individual Taxation, and Family Tax Splitting." Journal of Population Economics 26.3 (2013): 1195-1207.

BibTeX: Download