TY - JOUR
AU - King,Mervyn A.
TI - Welfare Analysis of Tax Reforms Using Household Data
JF - National Bureau of Economic Research Technical Working Paper Series
VL - No. 16
PY - 1981
Y2 - July 1981
UR - http://www.nber.org/papers/t0016
L1 - http://www.nber.org/papers/t0016.pdf
N1 - Author contact info:
Mervyn A. King
House of Lords
London
SW1A 0PW
United Kingdom
E-Mail: mak@mervynking.com
AB - 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.
ER -