Estimation of marginal cost of public funds

• Project/Area Number: 19730215
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Single-year Grants
• Research Field: Public finance/Monetary economics
• Research Institution: Hitotsubashi University
• Principal Investigator: BESSHO Shunichiro Hitotsubashi University, 大学院・経済学研究科, 講師 (90436741)
• Project Period (FY): 2007 – 2009
• Project Status: Completed (Fiscal Year 2009)
• Budget Amount: ¥3,180,000 (Direct Cost: ¥2,700,000、Indirect Cost: ¥480,000); Fiscal Year 2009: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000); Fiscal Year 2008: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000); Fiscal Year 2007: ¥1,100,000 (Direct Cost: ¥1,100,000)
• Keywords: 厚生損失 / 所得税 / 労働供給

Research Abstract

Marginal cost of public funds (MCPF) is an additional change of effective costs generated by one unit of additional tax revenue. I estimate labor supply elasticities of Japanese households and MCPF, using a large micro data from Employment Status Survey. The estimated uncompensated elasticities of labor supply are small (0.06-0.21), while the substitution and income effects are estimated rather large, compared with the literature. Based on these estimated parameters, I estimate a Japanese MCPF as 1.1 on average. In addition, optimal linear income tax systems are calculated.

Research Products

• [Journal Article] 最適線形所得税の推計:MCFからの接近 (2010)
  • Author(s): 別所俊一郎
  • Journal Title: 財政研究 6巻(近刊)
  • Peer Reviewed
• [Journal Article] 公共支出は労働供給に影響するか (2010)
  • Author(s): 別所俊一郎, 林正義
  • Journal Title: 経済政策ジャーナル 7巻1号 Pages: 19-32
  • NAID: 40017022813
  • Peer Reviewed
• [Journal Article] 公共支出は労働供給に影響するか (2010)
  • Author(s): 別所俊一郎・林正義
  • Journal Title: 経済政策ジャーナル 7巻1号 Pages: 19-32
  • NAID: 40017022813
  • Peer Reviewed
• [Journal Article] Unemployment risk and buffer-stock saving: An empirical investigation in Japan (2008)
  • Author(s): Bessho, Shun-ichiro
  • Journal Title: Japan and the World Economy vol.20 Pages: 303-325
  • NAID: 120006933657
  • Peer Reviewed
• [Journal Article] Competition for private capital and central grants: the case of Japanese industrial parks. University of California (2008)
  • Author(s): Bessho, Shun-ichiro, Kimiko Terai
  • Journal Title: Irvine, Economics Working Paper 09-09 Pages: 1-35
• [Journal Article] A Structural Estimation of the CES Preferences and Linear Labor Supply: The Case of Prime-Age Males in Japan (2008)
  • Author(s): Bessho, Shun-ichiro, Masayoshi Hayashi
  • Journal Title: Department of Economics, Hitotsubashi University Discussion Paper 2008-2 Pages: 1-39
• [Journal Article] Unemployment risk and buffer-stock saving : An empirical investigation in Japan (2008)
  • Author(s): Bessho, Shun-ichiro and Eiko Tobita
  • Journal Title: Japan and the World Economy 20 Pages: 303-325
  • NAID: 120006933657
  • Peer Reviewed
• [Journal Article] Competition for private capital and central grants : the case of Japanese industrial parks (2008)
  • Author(s): Bessho, Shun-ichiro, Kimiko Terai
  • Journal Title: University of California, Irvine, Economics Working Paper 09-09 Pages: 1-35
• [Journal Article] A Structural Estimation of the CES Preferences and Linear Labor Supply: The Case of Prime-Age Males in Japan (2008)
  • Author(s): Shun-ichiro Bessho, Masayoshi Hayashi
  • Journal Title: Department of Economics, Hitotsubashi University Discussion Paper 2008-2 Pages: 1-39
• [Journal Article] Unemployment risk and buffer-stock saving: An empirical investigation in Japan (2008)
  • Author(s): Shun-ichiro Bessho
  • Journal Title: Japan and the World Economy
  • NAID: 120006933657
  • Peer Reviewed
• [Presentation] 最適線形所得税の推計:MCFからの接近 (2009)
  • Author(s): 別所俊一郎
  • Organizer: 日本財政学会
  • Place of Presentation: 明治学院大学
  • Year and Date: 2009-10-18