Optimal taxation: the design of child related cash- and in-kind-benefits

Arbeitspapier

This paper contributes to the debate about the optimal design of tax-transfer systems. Based on the theory of optimal taxation, combined with microsimulation and microeconometric techniques we derive the welfare function which makes the current German tax and transfer system for single women optimal. Furthermore, we compare the welfare function conditional on the presence and age of children and assess how reforms of in-kind childcare transfers would affect the welfare function. This analysis allows us to derive conclusions about the optimal design of child related transfers and in-kind benefits.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 737

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Time Allocation and Labor Supply ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: Optimal Taxation ; Labor Supply Behavior ; Transfers for Children ; Familienleistungsausgleich ; Optimale Besteuerung ; Frauenerwerbstätigkeit ; Arbeitsangebot ; Alleinerziehende ; Mikrosimulation ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Haan, Peter ; Wrohlich, Katharina
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/27261
• Last update: 10.03.2025, 11:43 AM CET