Scandinavian Working Papers in Economics
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Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 02-4:
Skattereformer: Dynamiske effekter og fordelingskonsekvenser

Anders Frederiksen () and Jan V. Hansen

Abstract: We introduce the Hausman method for estimation of labour supply and present some recent

quantitative studies of Danish labour supply based on this approach. The preferred model is used

for simulating labour supply and distributional impact of alternative tax reforms which reduce the

tax burden on wage income in different income ranges. Despite the relatively small labour supply

elasticities, some of the experiments are almost self-financed, but the general picture is that rates

of self-financing are modest. It turns out that the choice of tax reform is important when

considering inequality issues.

Keywords: Labour; supply; (follow links to similar papers)

JEL-Codes: J22; (follow links to similar papers)

19 pages, January 1, 2002

Published in: Nationaløkonomisk tidsskrift, 2002, 2

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