The Macroeconomic Effects of Universal Basic Income Programs

نویسندگان

چکیده

What are the consequences of a nationwide reform transfer system based on means-testing toward one unconditional transfers? I answer this question with quantitative model to assess general equilibrium, inequality, and welfare effects substituting current US income security universal basic (UBI) policy. To do so, develop an overlapping generations idiosyncratic risk that incorporates intensive extensive margins labor supply, on-the-job learning, child-bearing costs. The tax-transfer closely mimics design. calibrate economy conduct counterfactual analyses implement reforms UBI. find expenditure-neutral has moderate impacts agents’ supply response but induces aggregate capital output grow due larger precautionary savings. A UBI $1,000 monthly requires substantial increase in tax rate consumption used clear government budget leads overall decrease macroeconomic aggregates, stemming from drop supply. In both cases, more equally distributed disposable consumption. constitutes loss at transition if it is results gain second scenario.

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ژورنال

عنوان ژورنال: Working paper

سال: 2021

ISSN: ['2381-6287']

DOI: https://doi.org/10.26509/frbc-wp-202121