A dynamic extension of the 'status-quo based' social welfare analysis

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Kirn, T. (2015). A dynamic extension of the 'status-quo based' social welfare analysis. Presented at the 5th World Congress of the International Microsimulation Association (IMA 2015), LISER (Luxembourg Institute of Socio-Economic Research), Esch-sur-Alzette, Luxembourg.

Publication type

Presentation at Scholarly Conference


To analyze changes in the relative welfare level, Bourguignon (RIW 57: 603-621, 2011b) introduced the ``status-quo based welfare comparison'', which takes into account the initial income distribution and income changes. This paper extends the ``status-quo based welfare comparison'' through a dynamic framework, which allows analyzing long term changes in the relative welfare level. To give an empirical demonstration, the Panel Study of Income Dynamics (PSID) is used to analyze the lifetime tax-advantage from owner-occupied housing and their impact on the lifetime personal income distribution. The comparative analysis of the ``status-quo based'' welfare analysis and the standard utilitarian approach reveals the differences between the static and dynamic welfare dominance and confirms the importance to flank the standard utilitarian analysis with a ``status-quo based'' welfare analysis.


Microsimulation und Model Development
Auftragsforschung, since June 2009

Content of this project is the ongoing development of the Liechtenstein micro-simulation models. There are two basic models: microLIE: PIT is the model of the personal income tax system and microLIE: ... more ...


Organizational Units

  • Chair for Tax Management and the Laws of Liechtenstein and International Taxation

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