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Daniele Pacifico
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ABSTRACT: The aim of this paper is to analyse the role of unobserved preference heterogeneity in structural discrete choice models of labour supply. Within this framework, unobserved heterogeneity has been estimated either parametrically or semiparametrically through random coefficient models. Nevertheless, the estimation of such models by means of standard, gradient-based methods is often difficult, in particular if the number of random parameters is high. For this reason, the role of unobserved taste variability in empirical studies is often constrained since only a small set of coefficients is assumed to be random. However, this simplification may affect the estimated labour supply elasticities and the subsequent policy recommendations. In this paper, we propose a new estimation method based on an EM algorithm that allows us to fully consider the effect of unobserved heterogeneity nonparametrically. Results show that labour supply elasticities and other post-estimation results change significantly only when unobserved heterogeneity is considered in a more flexible and comprehensive manner. Moreover, we analyse the behavioural effects of the introduction of a working-tax credit scheme in the Italian tax-benefit system and show that the magnitude of labour supply reactions and the post-reform income distribution can differ significantly depending on the specification of unobserved heterogeneity.
Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica, Center for the Analysis of Public Policies (CAPP). 01/2010;
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Daniele Pacifico
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ABSTRACT: The aim of this paper is to describe a Stata routine for the nonparametric estimation of mixed logit models using a Expectation-Maximisation algorithm. We also compare the performance of our estimator with respect to more typical parametric mixed logit models estimated by means of Simulated Maximum Likelihood.
Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica, Center for the Analysis of Public Policies (CAPP). 01/2010;
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Daniele Pacifico
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ABSTRACT: This pdf contains a do file that shows how to estimate a latent class discrete choice panel data model in Stata via Maximum Likelihood and an EM algorithm.
University Library of Munich, Germany, MPRA Paper. 01/2009;
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Daniele Pacifico
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ABSTRACT: This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distortions and income inequality. Finally, in an open economy, achieving the globally optimal level of protection requires an international coordination (rather than the harmonization) of IPR protection.
University Library of Munich, Germany, MPRA Paper. 01/2009;
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ABSTRACT: The aim of this paper is the study of three reforms of the Italian personal income tax that have been implemented over the past six years. The analysis is carried out in three stages. In the first stage we study their distributive effects using a static microsimulation model. In the second stage we focus on the labour supply effects by means of a structural microeconometric model of household labour supply; finally, we analyze the distributive effects of the reforms accounting for labour supply reactions. Our findings confirm that the extension of the no-tax area had positive effects in terms of both redistribution and work incentives, while greater benefits for households with children improved income distribution but with negative effects on the labour supply of married women.
Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica, Center for the Analysis of Public Policies (CAPP). 01/2009;
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Daniele Pacifico
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ABSTRACT: In this paper we evaluate in monetary terms the benefits from attending a post-secondary degree in an Italian university. We also propose a microsimulation model that takes into account the spatial distribution of scholarships, fees and other monetary and in-kind services related to the university sector. In this way, it is possible to obtain a good approximation of the real net benefit gained from attending a post-secondary Italian degree and to study its distributive impact on both the users and the whole Italian population. We will provide evidence that the benefits from public higher education have universalistic features. However, the tax-system that is applied by each university is slightly regressive whilst subsidies have a high potential in terms of redistribution, even though the allocated funds are not enough to create any significant effect. Given these results, a new tax-policy is proposed to overcome some of the problems of the present system.
Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica, Center for the Analysis of Public Policies (CAPP). 01/2009;
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Daniele Pacifico
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ABSTRACT: The aim of this paper is to analyse the role of unobserved heterogeneity in structural discrete choice models of labour supply for the evaluation of tax-reforms. Within this framework, unobserved heterogeneity has been estimated either parametrically or nonparametrically through random co- efficient models. Nevertheless, the estimation of such models by means of standard, gradient-based methods is often difficult, in particular if the number of random parameters is high. Given the relative big set of pa- rameters that enter in labour supply models, many researchers have to reduce the role of unobserved heterogeneity by specifying only a small set of random coefficients. However, this simplification affects the estimated labour supply elasticities, which then might hardly change when unob- served heterogeneity is considered in the model. In this paper, we present a new estimation method based on an EM algorithm that allows us to fully consider the effect of unobserved heterogeneity nonparametrically. Results show that labour supply elasticities do change significantly when the full set of coefficients is assumed to be random. Moreover, we analyse the behavioural effects of the introduction of a working-tax credit scheme in the Italian tax-benefit system and show that the magnitude of labour supply reactions and post-reform income distribution do change signifi- cantly when unobserved heterogeneity is fully considered.
