Welfare and Basic Income: Theoretical Implication in The Slemrod / Work-Leisure Model, Graphical Interpretation

  • Beev Ivailo Department of Economics, University of National and World Economy, Sofia, Bulgaria
  • Hristozov Yanko Department of Finance, University of National and World Economy, Sofia, Bulgaria
Keywords: Basic income, Slemrod, robotic-taxation, welfare

Abstract

The present study addresses the problem of basic income (BI), in its two varieties, as universal BI (UnBI) and as unconditional BI (UBI), with a view to the effect on individuals' well-being. For this purpose, Slemrod's general model was adapted and a graphical interpretation based on the standard leisure-time model was made. The use of the specific toolkit of ordinal utility theory makes it possible to identify an unexpected "externalities" - the emergence of a personal and social dilemma that generates crowding out-effect, which is able to eliminate the beneficial effects on the well-being of the introduction of BI into any of its forms, whether universal or unconditional. In this context, a proposal has been made (de lege ferenda), on the adaptation of the structure of the tax system that must incorporate the taxation of robotic labor: to successfully implement the BI conception.

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Published
2020-05-02
How to Cite
Ivailo, B., & Yanko, H. (2020). Welfare and Basic Income: Theoretical Implication in The Slemrod / Work-Leisure Model, Graphical Interpretation. Finance, Accounting and Business Analysis (FABA), 2(1), 35-41. Retrieved from https://faba.bg/index.php/faba/article/view/32
Section
Articles

STATISTICS
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