Modelling Welfare State Reform (eBook)

Front Cover 1
Modelling Welfare State Reform 4
Copyright Page 5
Table of Contents 10
INTRODUCTION TO THE SERIES 6
Dedication 7
Preface 8
List of figures 16
List of tables 18
Chapter 1. Purpose and method 22
1.1 Introduction 22
1.2 Applied general equilibrium models 26
1.3 Methodological aspects of MIMIC 30
1.4 An overview of the model structure of MIMIC 39
1.5 Comparison of MIMIC with other applied general equilibrium models 49
1.6 Outline of the study 54
PART I: 
58 
Chapter 2. The model of the firm 60
2.1 Output market environment 60
2.2 Input market environment 67
2.3 Production structure of individual firm 73
2.4 Firm behaviour 77
2.5 Calibration of the model of the firm 81
Appendix 2.A Cumulated production structure matrix, imports and indirect taxes 90
Chapter 3. The model of household behaviour 94
3.1 The household sector 94
3.2 Labour supply 98
3.3 Calibration of the household model 114
Chapter 4. Matchings, search strategy of unemployed and contractual wage formation 128
4.1 Search behaviour of unemployed persons 130
4.2 The matching process 135
4.3 Contractual wage formation 137
4.4 Calibration 147
Chapter 5. The public sector 154
5.1 Modelling of the public sector 154
5.2 The 1992 system of income taxes and social security premiums 159
Chapter 6. Links between model blocks 166
6.1 The model of the firm 166
6.2 The household model 167
6.3 The matching model 171
6.4 The wage model 172
6.5 The public sector model 173
PART II: 
176 
Chapter 7. The base projection 178
7.1 Projected development of exogenous variables 180
7.2 Selected outcomes of base projection 181
Chapter 8. Income tax instruments 186
8.1 Simulations on single tax parameters 187
8.2 Replacing the basic allowance by a tax credit 198
8.3 The 'Laffer' curve 202
Chapter 9. Reform of the income tax system 208
9.1 Income tax reform in OECD countries 208
9.2 The 1990 income tax reform in The Netherlands 210
9.3 Further income tax reform: the Stevens proposals 215
Chapter 10. Cutting back the welfare state 222
10.1 International comparison of social security systems 223
10.2 Minimum wages 226
10.3 Unemployment benefits 232
10.4 Disability benefits 236
10.5 Combined effects of reduction of labour market related social benefits and minimum wage 239
Chapter 11. Individualizing the income tax and social security system 242
11.1 Marriage relief and unemployment benefits in the OECD 242
11.2 Individualizing the tax system by cancelling the marriage relief 245
11.3 Individualizing government assistance 252
Chapter 12. Introduction of a negative income tax 260
12.1 Possible advantages and disadvantages of a negative income tax 261
12.2 Results of NIT experiments in the USA 264
12.3 The effects of a negative income tax in MIMIC 268
12.4 A negative income tax in a mini welfare state 273
Chapter 13. Evaluation 282
13.1 Policy simulations: relevance 282
13.2 Model structure: consistency and adequacy 287
References 294
Name index 306