Tax-Benefit Revealed Redistributive Preferences Over Time: Ireland 1987-2005

39 Pages Posted: 12 Oct 2010

See all articles by Olivier Bargain

Olivier Bargain

IZA Institute of Labor Economics; University College Dublin (UCD)

Claire Keane

Economic and Social Research Institute, Ireland

Abstract

By inverting Saez (2002)'s model of optimal income taxation, we characterize the redistributive preferences of the Irish government between 1987 and 2005. The (marginal) social welfare function revealed by this approach is consistently comparable over time and show great stability despite profound changes in market incomes and important fiscal reforms over the period. Results are robust to numerous checks regarding data, income concepts and elasticities. A comparison with the UK shows marked differences reflecting the narrow political spectrum in Ireland compared to radical changes in British politics over the past 30 years. Some "anomalies" in the revealed social welfare function suggests introducing transfers to the working poor.

Keywords: social preferences, optimal taxation, labour supply

JEL Classification: C63, C81, D31, D63, H11, H21, H23, H31

Suggested Citation

Bargain, Olivier and Keane, Claire, Tax-Benefit Revealed Redistributive Preferences Over Time: Ireland 1987-2005. IZA Discussion Paper No. 5221, Available at SSRN: https://ssrn.com/abstract=1690039

Olivier Bargain (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University College Dublin (UCD) ( email )

Belfield, Dublin 4 4
Ireland
+353 1 716 8357 (Phone)
+353 1 283 0068 (Fax)

HOME PAGE: http://www.ucd.ie/economics/staff/obargain/obargain.htm

Claire Keane

Economic and Social Research Institute, Ireland ( email )

Whitaker Square
Sir John Rogerson's Quay
Dublin 2
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
17
Abstract Views
365
PlumX Metrics