NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Welfare Analysis of Tax Reforms Using Household Data

Mervyn A. King

NBER Technical Working Paper No. 16
Issued in July 1981
NBER Program(s):   PE

The paper discusses a methodology for calculating the distribution of gains and losses from a policy change using data for a large sample of households. Estimates are based on the equivalent income function, which is money metric utility defined over observable variables. This enables calculations to be standardised, and a computer program to compute the statistics presented in the paper is available for a general demand system. Equivalent income is related to measures of deadweight loss, and standard errors are computed for each of the welfare measures. An application to UK data for 5895 households is given which simulates a reform that involves eliminating housing subsidies.

download in pdf format
   (2132 K)

email paper

This paper is available as PDF (2132 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/t0016

Published: King, Mervyn A. "Welfare Analysis of Tax Reforms Using Data." Journal of Public Economics, Volume 21, Issue 2, July 1983, Pages 183-214

Users who downloaded this paper also downloaded these:
King w1996 The Empirical Analysis of Tax Reforms
King w1681 A Pigovian Rule for the Optimum Provision of Public Goods
King w0468 An Index of Inequality: With Applications to Horizontal Equity and Social Mobility
King The Distribution of Gains and Losses from Changes in the Tax Treatment of Housing
Bertrand, Duflo, and Mullainathan w8841 How Much Should We Trust Differences-in-Differences Estimates?
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us