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Fiscal Policies and Behavior of Economic Agents

Fiscal policies and the behaviour of economic agents (JEL H3) cover how taxes and spending affect agents' decisions.

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Scope

It includes behavioural responses to taxation and transfers, labour-supply and saving effects, and tax avoidance.

Sub-topics

Core questions

  • How do agents respond to taxes and transfers?
  • How do fiscal policies affect work and saving?
  • How large are behavioural responses?

Key concepts

  • Behavioural responses
  • Elasticity of taxable income
  • Labour-supply effects
  • Tax avoidance
  • Incentives

Related topics

Frequently asked questions

Why do behavioural responses to taxes matter?
Because they determine the efficiency costs and revenue effects of tax and transfer policies.

Methods for this concept

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