Scandinavian Working Papers in Economics

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

No 02-4: Skattereformer: Dynamiske effekter og fordelingskonsekvenser

Anders Frederiksen () and Jan V. Hansen
Additional contact information
Anders Frederiksen: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Jan V. Hansen: Det Økonomiske Råds Sekretariat, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

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

JEL-codes: J22

19 pages, January 1, 2002

Note: Published in: Nationaløkonomisk tidsskrift, 2002, 2

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