A quantitative evaluation of universal basic income

Juan Carlos Conesa, Bo Li and Qian Li

Journal of Public Economics, 2023, vol. 223, issue C

Abstract: We provide a quantitative evaluation of the impact of Universal Basic Income (UBI) as an alternative to the existing system of means-tested transfers. We explore varying levels of UBI generosity, paired with different strategies to finance it. All the reforms we consider result in welfare losses for a huge majority of initial households. Moreover, these losses are increasing in UBI generosity. A reform financed with consumption taxes implies lower efficiency losses than reforms financed with income taxes, but fewer individuals benefit from it.

Keywords: Incomplete market; Heterogeneous agents; Learning by doing; Consumption floor; Consumption tax; Universal basic income; Transitional dynamics (search for similar items in EconPapers)
JEL-codes: D52 E60 H21 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:223:y:2023:i:c:s0047272723000634

DOI: 10.1016/j.jpubeco.2023.104881

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