Net Cost |
Gainers and Losers |
Marginal Effective Tax Rates |
Replacement Rates |
Changes By Decile |
Lorenz Curve |
Inequality |
Poverty |
Taxes on Income |
Taxes on Spending |
Spending on Benefits |
Benefit Targetting |
PLEASE NOTE this model is incomplete and there are bugs in the interface (some arrows wrong way). Also, these inputs shouldn’t be zero.
Now, we invite you to experiment with just the state benefit system, holding taxes constant.
The inputs should be familiar to you from before, but bear in mind the extra complexity of the underlying benefit system.
we’ve discussed the inherent trade-off between targeting expenditure on those most in need, and imposing high marginal tax rates (poverty traps), and perhaps high replacement rates, on the poor. Try to find empirically the relationship between these things by varying the generosity of each of our three types of benefit. Create a table of your results.