A Structural Labour Supply Model with Nonparametric Preferences

Nonparametric techniques are usually seen as a statistic device for data description and exploration, and not as a tool for estimating models with a richer economic structure, which are often required for policy analysis. This paper presents an example where nonparametric flexibility can be attained in a fully structural model. A structural labour supply model with a nonparametric specification of preferences is introduced, which can be used for the analysis of all sorts of (non-linear) tax and benefits changes. Moreover, the model can deal with several other problems in estimation of structur... Mehr ...