% WARNING: This file may contain UTF-8 (unicode) characters. % While non-8-bit characters are officially unsupported in BibTeX, you % can use them with the biber backend of biblatex % usepackage[backend=biber]{biblatex} @techreport{NBERw9455, title = "Simulating the Response to Reform of Canada's Income Security Programs", author = "Baker, Michael and Gruber, Jonathan and Milligan, Kevin", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "9455", year = "2003", month = "January", doi = {10.3386/w9455}, URL = "http://www.nber.org/papers/w9455", abstract = {We explore the fiscal implications of reforms to the Canadian retirement income system by decomposing the fiscal effect of reforms into two components. The mechanical effect captures the change in the government's budget assuming no behavioral response to the reform. The second component is the fiscal implication of the behavioral effect, which captures the influence of any induced changes in elderly labor supply on government budgets. We find that the behavioral response can account for up to half of the total impact of reform on government budgets. The behavioral response affects government budgets not only in the retirement income system but also through increased income, payroll, and consumption tax revenue on any induced labor market earnings among the elderly. We show that fully accounting for the behavioral response to reforms can change the cost estimates and distributive impact of retirement income reforms.}, }