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Supply Decisions (supply + decision)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia

THE ECONOMIC RECORD, Issue 242 2002
Alan Duncan
This paper derives and estimates an econometric model of labour supply among sole parents in Australia, using modelling techniques which treat the labour supply decision as a utility maximising choice between a given number of discrete states. The model is then used to look at the likely effects of actual and hypothetical welfare policy reforms. Model estimates are based upon net incomes generated by the Melbourne Institute Tax and Transfer Simulator (MITTS), developed at the Melbourne Institute in collaboration with the Department of Family and Community Services (FaCS). [source]

Intergenerational Allocation of Government Expenditures: Externalities and Optimal Taxation

JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 1 2008
KAZI IQBAL
This paper studies optimal capital and labor income taxes when the benefits of public goods are age-dependent. Provided the government can impose a consumption tax, it can attain the first-best resource allocation. This involves the uniform taxation of the cohorts' labor income and a zero capital income tax. With no consumption tax and optimally chosen government spending, labor income should be taxed nonuniformly across cohorts and the capital income tax should be nonzero. Deviations of the public goods from their respective optima create distortions. These affect the labor supply decisions of both cohorts and capital accumulation, providing a further reason to tax (or subsidize) capital income. [source]

Employment Decisions of Married Women: Evidence and Explanations

LABOUR, Issue 1 2000
Daniela Del Boca
Aggregate evidence has revealed a significant increase in women's labour market participation (especially among married women) and a decline in male participation, both in Italy and in all the other OECD countries. This paper empirically tests the relationship between the education and employment status of husbands and wives using the Bank of Italy Survey (1995). The results of our analysis show that employed women are likely to be married to employed men with a higher level of education and higher income. The estimates of the labour supply decisions of wives show that the effect of the unemployment status of husbands is mediated by other factors associated with the family's view of wives working outside home. The response to a husband's unemployment depends significantly on the employment decisions of parents (mothers and mothers-in-law), a proxy for the couple's attitude towards women's work. [source]

WELL-BEHAVED PRODUCTION ECONOMIES

METROECONOMICA, Issue 4 2005
Michael Mandler
ABSTRACT We show that production economies are tâtonnement stable if consumers satisfy the weak axiom of revealed preference. To ensure that producer supply decisions are well defined, we restrict prices in the tâtonnement so that positive profits cannot occur but do allow supply decisions to be multi-valued. The model therefore permits linear activities and hence the technologies that admit capital theory paradoxes. The result thus shows that if the consumer side of the economy is well behaved then capital theory paradoxes are irrelevant for stability. Other features of the Walrasian general-equilibrium model that have aroused suspicion (e.g. that a price below its equilibrium value may have negative excess demand and thus temporarily move even lower in a tâtonnement) may be a sign of trouble but also have nothing to do with capital theory paradoxes. We show that these phenomena arise even when there is no choice of technique and there is an aggregate production function. [source]