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The Implications for Tax Policy of Uncertainty About Labor-Supply and Savings Responses

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  • Randolph, William C.
  • Rogers, Diane Lim

Abstract

Examines what we do and do not know about two types of behavioral responses most critical to the consumption-tax versus income tax debate. Shows how our uncertainty about the sizes of these behavioral responses can be translated into statements of uncertainly about the economic effects of a switch from an income tax to a consumption tax.

Suggested Citation

  • Randolph, William C. & Rogers, Diane Lim, 1995. "The Implications for Tax Policy of Uncertainty About Labor-Supply and Savings Responses," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(3), pages 429-446, September.
    • Handle: RePEc:ntj:journl:v:48:y:1995:i:3:p:429-46
    DOI: 10.1086/NTJ41789160
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    References listed on IDEAS

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    1. John Bound & Charles Brown & Greg J. Duncan & Willard L. Rodgers, 1989. "Measurement Error In Cross-Sectional and Longitudinal Labor Market Surveys: Results From Two Validation Studies," NBER Working Papers 2884, National Bureau of Economic Research, Inc.
    2. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-357, April.
    3. Harrison, Glenn W & Vinod, H D, 1992. "The Sensitivity Analysis of Applied General Equilibrium Models: Completely Randomized Factorial Sampling Designs," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 357-362, May.
    4. Gravelle, Jane G, 1991. "Income, Consumption, and Wage Taxation in a Life-Cycle Model: Separating Efficiency from Redistribution," American Economic Review, American Economic Association, vol. 81(4), pages 985-995, September.
    5. Thomas MaCurdy & David Green & Harry Paarsch, 1990. "Assessing Empirical Approaches for Analyzing Taxes and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 415-490.
    6. James P. Smith, 1977. "Family Labor Supply over the Life Cycle," NBER Chapters, in: Explorations in Economic Research, Volume 4, number 2, pages 205-276, National Bureau of Economic Research, Inc.
    7. Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009. "A General Equilibrium Model for Tax Policy Evaluation," National Bureau of Economic Research Books, University of Chicago Press, number 9780226036335, August.
    8. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5, National Bureau of Economic Research, Inc.
    9. repec:hoo:wpaper:e-90-11 is not listed on IDEAS
    10. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
    11. Weber, Warren E, 1970. "The Effect of Interest Rates on Aggregate Consumption," American Economic Review, American Economic Association, vol. 60(4), pages 591-600, September.
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    Cited by:

    1. Atallah, Gamal, 1998. "Les impôts sur le revenu et l’offre de travail des femmes mariées : une revue de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(1), pages 95-128, mars.
    2. Douglas W. Elmendorf, "undated". "The Effect of Interest-Rate Changes on Household Saving and Consumption: A Survey," Finance and Economics Discussion Series 1996-27, Board of Governors of the Federal Reserve System (U.S.), revised 10 Dec 2019.
    3. Hanson, Kenneth & Somwaru, Agapi, 2003. "Distributional Effects of U.S. Farm Commodity Programs: Accounting for Farm and Non-Farm Households," Conference papers 331120, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. John Freebairn, 1997. "Options and Prospects for Taxation Reform," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 373-386, December.
    5. Giuseppe Ruggieri & Maxime Fougère, 1997. "The effect of tax-based savings incentives on government revenue," Fiscal Studies, Institute for Fiscal Studies, vol. 18(2), pages 143-159, May.

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