@workingpaper{nokey,

title = {The implications of UBI on the Utility Function and Tax Revenue: Further Calibrating of Basic Income Effects},

author = {Bernhard Neumärker and Jette Weinel},

url = {https://www.fribis.uni-freiburg.de/wp-content/uploads/2024/05/FRIBIS-Discussion-Paper_02_24_Neumaerker_Weinel.pdf},

doi = {DOI:10.6094/FRIBIS/DiscussionPaper/12/02-2024},

year  = {2024},

date = {2024-05-29},

urldate = {2024-05-29},

abstract = {Economic modeling of Universal Basic Income (UBI) often fails to consider how individuals' utility calculations shift with unconditional transfers. In this paper we further develop the model of our previous paper - The Implications of UBI on Utility Functions and Tax Revenue (Neumärker, B., Weinel, J., 2022). We contend that, while traditional fiscal models rely on an additively separable relationship between consumption and labor, the utility calculation for individuals influenced by UBI is better represented by a multiplicative relationship. This shift arises from the time sovereignty afforded by UBI, empowering individuals to become self-determined, creative, and intrinsically motivated. We explore the implications of the UBI-adapted utility function on tax revenue. Specifically, we analyze the consumption tax revenue curve under UBI (multiplicative preferences) versus a means-tested welfare system (additive separable preferences).



The papers of the FRIBIS Discussion Paper Series are working papers that do not undergo a peer-review process by FRIBIS. The authors are responsible for the content.},

howpublished = {FRIBIS Discussion Paper Series, FRIBIS Paper No. 02-2024},

keywords = {basic income, economics, english, taxation},

pubstate = {published},

tppubtype = {workingpaper}

}