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|Title:||MACROECONOMIC IMPACT OF UNIVERSAL BASIC INCOME||Authors:||LEE LEONARD||Issue Date:||8-Apr-2019||Citation:||LEE LEONARD (2019-04-08). MACROECONOMIC IMPACT OF UNIVERSAL BASIC INCOME. ScholarBank@NUS Repository.||Abstract:||Universal basic income (UBI) has been implemented in a few countries. Empirical works find that the UBI reduces income inequality, but reduces labor supply. In this paper, I build a general equilibrium macroeconomic model with consumption-leisure choice to evaluate the aggregate implications of UBI. In particular, the model captures the salient feature that UBI affects both inequality and labor supply, and the amount of UBI is determined by the government’s budget constraint in the general equilibrium, which is in turn determined by labor supply. I calibrate my model using data moments from Singapore. Results from the model simulation show that UBI can reduce income inequality, increase labor supply relatively compared to the current social security system and is politically feasible because more than half of the individuals are better off in terms of utility if a UBI were to be implemented in place of the current social security system.||URI:||https://scholarbank.nus.edu.sg/handle/10635/156380|
|Appears in Collections:||Bachelor's Theses|
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