IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v14y1980i1p69-81.html
   My bibliography  Save this article

A reinterpretation of the traditional income-leisure model, with application to in-kind subsidy programs

Author

Listed:
  • Murray, Michael P.

Abstract

The traditional income-leisure model treats income as a composite commodity; it is not appropriate for studying commodity subsidies which alter relative prices within the composite. I suggest reinterpreting the traditional model as a special case of a utility function weakly separable with respect to leisure and all other commodities. This interpretation allows the work incentive effects of any subsidy program to be inferred from the terms of the program and data on the work effort effects of any other subside program, most notably income maintenance experiments. I illustrate our approach by estimating the work incentive effects of public housing. The model implies that even if special complementarities between leisure or work and the subsidized good are neglected, in kind transfers will have different work incentive effects than equivalent cash transfers. In practice, in kind transfers will generally stimulate work efforts vis-a-vis equivalent cash grants.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Murray, Michael P., 1980. "A reinterpretation of the traditional income-leisure model, with application to in-kind subsidy programs," Journal of Public Economics, Elsevier, vol. 14(1), pages 69-81, August.
    • Handle: RePEc:eee:pubeco:v:14:y:1980:i:1:p:69-81
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0047-2727(80)90005-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sandra J. Newman, 2008. "Does housing matter for poor families? A critical summary of research and issues still to be resolved," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(4), pages 895-925.
    2. Chen, Jie, 2006. "The Dynamics of Housing Allowance Claims in Sweden: A discrete-time hazard analysis," Working Paper Series 2006:1, Uppsala University, Department of Economics.
    3. Isaac F. Megbolugbe, 1991. "Hedonic Indices and Housing Programme Benefits," Urban Studies, Urban Studies Journal Limited, vol. 28(5), pages 773-781, October.
    4. Luca Giangregorio, 2024. "Welfare type and income inequality: an income source decomposition including in-kind benefits and cash-transfers entitlement," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(2), pages 367-403, April.
    5. Murray, Michael P. & Sun, Guoqing, 2017. "The demand for space in China," Journal of Urban Economics, Elsevier, vol. 98(C), pages 214-222.
    6. Fessler, Pirmin & Rehm, Miriam & Tockner, Lukas, 2014. "The impact of housing non-cash income on the unconditional distribution of household income in Austria," Working Paper Series 1718, European Central Bank.
    7. Mattos, Enlinson & Terra, Rafael, 2016. "Cash-cum-in-kind transfers and income tax function," Textos para discussão 414, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    8. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-383, June.
    9. Nisha Agrawal, 1988. "The Economic Effects of Public Housing in Australia," The Economic Record, The Economic Society of Australia, vol. 64(4), pages 254-267, December.
    10. B.L. DeBorger, 1985. "Benefits and Consumption Effects of Public Housing Programs in Belgium: Some Aggregate Results," Urban Studies, Urban Studies Journal Limited, vol. 22(5), pages 409-419, October.
    11. Moffitt, Robert A., 2002. "Welfare programs and labor supply," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 34, pages 2393-2430, Elsevier.
    12. Shroder, Mark, 2002. "Does housing assistance perversely affect self-sufficiency? A review essay," Journal of Housing Economics, Elsevier, vol. 11(4), pages 381-417, December.
    13. Eoin Corrigan, 2019. "The Scale and Impact of the Local Authority Rent Subsidy," The Economic and Social Review, Economic and Social Studies, vol. 50(1), pages 159-211.
    14. Alberto Pench, 2018. "Intra Generational Solidarity and Long Term Care: A Role for In Kind Transfers," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2018(1), pages 35-57.
    15. Newman, Sandra & Harkness, Joseph, 2000. "Assisted Housing and the Educational Attainment of Children," Journal of Housing Economics, Elsevier, vol. 9(1-2), pages 40-63, March.
    16. Walter S. Misiolek & Harold W. Elder, 1987. "Cost-Effective Redistribution: Implications of a Basic Needs Approach to Public Assistance," Public Finance Review, , vol. 15(1), pages 76-97, January.
    17. Skoufias, Emmanuel & Gonzalez-Cossio, Teresa, 2008. "The Impacts of Cash and In-Kind Transfers on Consumption and Labor Supply: Experimental Evidence from Rural Mexico," Policy Research Working Paper Series 4778, The World Bank.
    18. Simon Feeny & Rachel Ong & Heath Spong & Gavin Wood, 2012. "The Impact of Housing Assistance on the Employment Outcomes of Labour Market Programme Participants in Australia," Urban Studies, Urban Studies Journal Limited, vol. 49(4), pages 821-844, March.
    19. Federico Tagliati, 2019. "Child labor under cash and in-kind transfers: evidence from rural Mexico," Working Papers 1935, Banco de España.
    20. Borbely, Daniel, 2022. "The impact of housing subsidy cuts on the labour market outcomes of claimants: Evidence from England," Journal of Housing Economics, Elsevier, vol. 57(C).
    21. Enlinson Mattos & Rafael Terra, 2016. "Nature of transfers, income tax function and empirical estimation of elasticity of taxable income for Brazil," Applied Economics, Taylor & Francis Journals, vol. 48(53), pages 5201-5220, November.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:14:y:1980:i:1:p:69-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.