Labour-Supply Behaviour

2021 ◽  
pp. 115-149
Author(s):  
Cathal O'Donoghue
Keyword(s):  
Fiscal Policy ◽  
Labour Supply ◽  
Choice Model ◽  
Policy Instruments ◽  
Revealed Preference ◽  
Behavioural Response ◽  
Trade Off ◽  
Measurement Issues ◽  
Labour Participation ◽  
Microsimulation Models

In the preceding chapters, the focus was on simulating policies that aim to reduce poverty, generate revenue, or redistribute resources. However, many public policies also try to incentivize behaviour, such as those to improve labour participation or supply, or to change behaviours in relation to savings or pollution. Social- and fiscal-policy instruments face a fundamental trade-off. An instrument that performs well from an income-maintenance perspective may have unintended behavioural consequences. This chapter considers the structure of instruments that have an explicit goal to improve behavioural response, particularly focusing on in-work benefits. The chapter also describes how to use a microsimulation mode to simulate the inputs required for the estimation of a behavioural-econometric model, and then estimates a revealed-preference-choice model. The chapter then describes a method often used in microsimulation models to calibrate choice models for simulation purposes. In terms of measurement issues related to the behavioural analysis, we describe the design and use of replacement rates. The chapter concludes by undertaking a simulation of the introduction of a change in in-work benefits.

scholarly journals Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters

2021 ◽  
Author(s):  
Aliaksandr Malokin ◽  
Giovanni Circella ◽  
Patricia L. Mokhtarian
Keyword(s):  
Older Adults ◽  
Young Adults ◽  
Willingness To Pay ◽  
Travel Time ◽  
Choice Model ◽  
Mode Choice ◽  
Revealed Preference ◽  
Northern California ◽  
Factors Affecting ◽  
The Impact

AbstractMillennials, the demographic cohort born in the last two decades of the twentieth century, are reported to adopt information and communication technologies (ICTs) in their everyday lives, including travel, to a greater extent than older generations. As ICT-driven travel-based multitasking influences travelers’ experience and satisfaction in various ways, millennials are expected to be affected at a greater scale. Still, to our knowledge, no previous studies have specifically focused on the impact of travel multitasking on travel behavior and the value of travel time (VOTT) of young adults. To address this gap, we use an original dataset collected among Northern California commuters (N = 2216) to analyze the magnitude and significance of individual and household-level factors affecting commute mode choice. We estimate a revealed-preference mode choice model and investigate the differences between millennials and older adults in the sample. Additionally, we conduct a sensitivity analysis to explore how incorporation of explanatory factors such as attitudes and propensity to multitask while traveling in mode choice models affects coefficient estimates, VOTT, and willingness to pay to use a laptop on the commute. Compared to non-millennials, the mode choice of millennials is found to be less affected by socio-economic characteristics and more strongly influenced by the activities performed while traveling. Young adults are found to have lower VOTT than older adults for both in-vehicle (15.0% less) and out-of-vehicle travel time (15.7% less), and higher willingness to pay (in time or money) to use a laptop, even after controlling for demographic traits, personal attitudes, and the propensity to multitask. This study contributes to better understanding the commuting behavior of millennials, and the factors affecting it, a topic of interest to transportation researchers, planners, and practitioners.

scholarly journals The Effect of Unconditional Cash Transfers on Adult Labour Supply: A Unitary Discrete Choice Model for the Case of Ecuador

2015 ◽  
Vol 10 (2) ◽  
Author(s):  
Andrés Mideros ◽  
Cathal O’Donoghue
Keyword(s):  
Discrete Choice ◽  
Labour Supply ◽  
Choice Model ◽  
Discrete Choice Model ◽  
Cash Transfers ◽  
Negative Income ◽  
Social Transfers ◽  
Supply Model ◽  
Using Data ◽  
Unconditional Cash Transfers

AbstractWe examine the effect of unconditional cash transfers by a unitary discrete labour supply model. We argue that there is no negative income effect of social transfers in the case of poor adults because leisure could not be assumed to be a normal good under such conditions. Using data from the national employment survey of Ecuador (ENEMDUR) we estimate the effect of the

scholarly journals Economic policy and confidence of economic agents – a causal relationship?

2020 ◽  
Vol 20 (4) ◽  
pp. 471-484
Author(s):  
Silvo Dajčman
Keyword(s):  
Fiscal Policy ◽  
Granger Causality ◽  
Government Spending ◽  
Government Expenditure ◽  
Policy Instruments ◽  
Consumer Confidence ◽  
Causality Analysis ◽  
Economic Agents ◽  
Business Confidence ◽  
The Government

AbstractThe purpose of this paper is to study whether innovations in monetary and fiscal policy are a leading indicator of future business and consumer confidence and reverse applying the panel Granger causality analysis to two periods in the history of the euro area: before and after the start of the Great Recession. The results show that Granger causality interaction between the confidence of economic agents and the stance of monetary policy (measured by the shadow rate) is stronger than between the former and the fiscal policy instruments. The European Central Bank (ECB) shadow rate innovations Granger caused business and consumer confidence in both periods, but also indicators of confidence Granger caused the shadow rate. No such feedback could be established between two fiscal policy instruments (government expenditure and revenue growth) and the indicators of confidence. Government spending and revenues Granger caused business confidence in the first subperiod, but not in the second subperiod when the causality reversed. The government revenues Granger caused consumer confidence in the first subperiod, while government expenditures in the second subperiod. Consumer confidence Granger caused government spending in the first subperiod.

scholarly journals How Fiscal Policy in Bulgaria may Affect the Transition to a Low Carbon Economy?

2020 ◽  
Vol 26 (4) ◽  
pp. 525-535
Keyword(s):  
Fiscal Policy ◽  
Policy Instruments ◽  
Macroeconomic Policy ◽  
Currency Board ◽  
Low Carbon ◽  
Low Carbon Economy ◽  
Policy Goals ◽  
Short Run ◽  
Macroeconomic Environment ◽  
Carbon Economy

The adaptation of traditional macroeconomic policy goals to new ecological realities assigns a specific role to macroeconomic policy. We model the short-run transmission mechanism of fiscal policy under Currency Board Arrangements in Bulgaria in order to assess the fiscal policy potential to boost sustainable economic development and compensate for the economic growth losses due to decarbonisation of the economy. We find that fiscal policy instruments in Bulgaria have no statistically significant effect on GDP components considered separately but they do have a complex effect on macroeconomic environment in the country. This indicates that specific fiscal policy effects to support the transition to a low-carbon economy in Bulgaria cannot be expected and the structural policies should be followed.

scholarly journals Railway and road discrete choice model for foreign trade freight between Antioquia and the Port of Cartagena

2016 ◽  
Vol 36 (3) ◽  
pp. 22 ◽  
Author(s):  
Juan Diego Pineda Jaramillo ◽  
Iván Reinaldo Sarmiento Ordosgoitia ◽  
Jorge Eliécer Córdoba Maquilón
Keyword(s):  
Qualitative Research ◽  
Discrete Choice ◽  
Logit Model ◽  
Choice Model ◽  
Stated Preference ◽  
Revealed Preference ◽  
Freight Transportation ◽  
Multinomial Logit Model ◽  
Discrete Choice Model ◽  
The Cost

Most Colombian freight is transported on roads with barely acceptable conditions, and although there is a speculation about the need for a railway for freight transportation, there is not a study in Colombia showing the variables that influence the modal choice by the companies that generate freight transportation. This article presents the calculation of demand for a hypothetical railway through a discrete choice model. It begins with a qualitative research through focus group techniques to identify the variables that influence the choice of persons responsible for the transportation of large commercial companies in Antioquia (Colombia). The influential variables in the election were the cost and service frequency, and these variables were used to apply a Stated Preference (SP) and Revealed Preference (RP) survey, then to calibrate a Multinomial Logit Model (MNL), and to estimate the influence of each of them. We show that the probability of railway choice by the studied companies varies between 67% and 93%, depending on differences in these variables.

Kebijakan Fiskal pada Masa Rasulullah dan Sekarang

2020 ◽  
Vol 3 (2) ◽  
pp. 153-168
Author(s):  
Ibnu Hasan Karbila ◽  
Abdul Helim ◽  
Rofii Rofii
Keyword(s):  
Fiscal Policy ◽  
Data Collection ◽  
Policy Instruments ◽  
Secondary Data ◽  
The State ◽  
Literature Study ◽  
Capitalist Economy ◽  
Data Collection Methods ◽  
Second Year ◽  
Collection Methods

This study aimed at distinguishing fiscal policy during the time of the Prophet and the fiscal policy prevailing in Indonesia. The study method in this research is literature study. The type of data used is secondary data with data collection methods through literature study. The results showed that during the time of the Prophet, the first fiscal policy that was taken after moving to Medina was to make muhajirin and ansar fraternal and provide employment for the Muhajirin. In the second year, almsgiving and fitrah are compulsory, followed by zakat in the ninth year of hijriyah. From here emerged fiscal policy instruments derived from zakat, infaq, alms and waqf. Some of these elements are mandatory and some are voluntary. Zakat is an element that must be paid after reaching the nisab, while infaq, alms and waqf are voluntary. This voluntary element is what distinguishes an Islamic economy from a capitalist economy. Another difference between the two is related to the management of state money where part of the APBN sources obtained from debt must be free from the element of interest, thus, the state debt can actually be obtained in ways that are in accordance with Islamic Sharia

Introduction

2021 ◽  
pp. 3-24
Author(s):  
Cathal O'Donoghue
Keyword(s):  
Income Distribution ◽  
Labour Supply ◽  
Distribution Analysis ◽  
Unit Of Analysis ◽  
Environmental Models ◽  
Simulation Based ◽  
Ex Ante ◽  
Static Models ◽  
Spatial Microsimulation ◽  
Microsimulation Models

This chapter serves as an introduction to the book Practical Microsimulation Modelling. It provides as context a description of microsimulation modelling, a simulation-based tool with a micro-unit of analysis that can be used for ex-ante analysis. The methodology is motivated as a mechanism of abstracting from reality to help us understand complexity better. It describes the main analytical objectives of users of microsimulation models in the field of income distribution analysis. The chapter then describes in turn the main methods of microsimulation considered in the book: hypothetical models, static models, behavioural models (labour supply and consumption), environmental models, decomposing inequality, dynamic microsimulation models, and spatial microsimulation models. The chapter concludes by providing an outline of the book.

Air pollution and public finance: evidence for European countries

2019 ◽  
Vol 46 (7) ◽  
pp. 1398-1417 ◽  
Author(s):  
Maria Carratù ◽  
Bruno Chiarini ◽  
Antonella D’Agostino ◽  
Elisabetta Marzano ◽  
Andrea Regoli
Keyword(s):  
Public Finance ◽  
Air Pollution ◽  
Fiscal Policy ◽  
Environmental Quality ◽  
Public Debt ◽  
Environmental Performance ◽  
European Countries ◽  
Fiscal Consolidation ◽  
Trade Off ◽  
Content Type

Purpose The purpose of this paper is to investigate whether a statistically significant relationship exists between environmental quality, as measured by consumption-related air pollution, and public debt in Europe. In addition, since the debt burden is one of the most important indicators of fiscal soundness within the European Union (EU) Treaty and the subsequent fiscal compact, the authors propose a simple test to determine whether participation in EU Treaties has shaped the empirical relationship between fiscal policy/public debt and environmental performance. Design/methodology/approach To this end, the authors built a panel data set that covers 24 European countries over the period 1996–2015. Findings The aspect that the authors want to underline is a possible trade off, which is confirmed in the empirical analysis, between the public finance equilibrium and the maintenance of a public good such as air quality. However, there are important non-linearities that shape the interaction between public debt and environmental pollution. Similarly, threshold effects arise when the authors examine the interaction between EU regulation and public debt and when the authors separately examine high debt and low debt countries. When the authors account for the stabilization rules introduced by EU Treaties, a negative effect on pollution is evident; in this way, fiscal consolidation limits the positive effect of fiscal policy. Practical implications The results point out the existence of a potential trade-off between the role of EU as a regulator aiming to mitigate environmental pollution, and its role within the Stability and Growth Pact. The analysis highlights that fiscal consolidation policies, while facilitating the achievement of macroeconomic stability within EU, might have a negative side effect on the environment quality, which spreads beyond the borders of one single country. Originality/value While a number of studies have suggested that fiscal spending might contribute to the level of pollution in European countries, there is scant evidence of the effect of public debt on environmental performance. This lack of scientific knowledge is a serious shortcoming, since it may allow for an underrepresentation of the wide-ranging consequences of stabilization programmes targeting the debt-to-GDP ratio, which could affect environmental quality.

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