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Reforming the tax system for the 21st century.
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Matching methods for treatment evaluation based on a conditional independence assumption do not balance selective unobserved differences between treated and non-treated. We derive a simple correction term if there is an instrument that shifts the treatment probability to zero in special cases. Policies with eligibility restrictions, where treatment is impossible if some variable exceeds a certain value, provide a natural application. In an empirical analysis, we exploit the age eligibility restriction in the Swedish Youth Practice subsidized work program for young unemployed, where compliance is imperfect among the young. Adjusting the matching estimator for selectivity changes the results towards making subsidized work detrimental in moving individuals into employment.
The coalition agreement set out a commitment to 'increase the proportion of tax revenue accounted for by environmental taxes'. This article looks at the status of that pledge after the autumn statement.
Comment published in the December issue of Tax Journal for the 'Reflections on 2012' feature.
Orazio Attanasio, Vincenzo Di Maro and Marcos Vera-Hernandez
This paper estimates the impact of a long-established pre-school nursery programme on children's nutritional status.
This article corrects 'The Distributional Impact of the 2012–13 Higher Education Funding Reforms in England', Fiscal Studies, Vol. 33, Issue 2, pp. 211–236.
Andrew W Dilnot
This paper is based on the Institute for Fiscal Studies (IFS) Annual Lecture, delivered by Andrew Dilnot.
Ruud A. De Mooij
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