An Experimental Study of the Negative Income Tax
Lays out key issues for the experiment to examine, including:
- Does a negative tax, because its financial assistance is available to families before they break up, have a positive impact on family stability?
- How does a negative income tax affect earnings? What levels of assistance provide the greatest assistance while avoiding work disincentive effects?
- What are the administrative costs of the program?
- What are people’s spending and saving patterns? Mobility patterns?
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