Papers by marilena loatelli
Social Science Research Network, Mar 8, 2010
We develop and estimate a microeconometric model of household labour supply in four European coun... more We develop and estimate a microeconometric model of household labour supply in four European countries with differing economies and welfare policy regimes: Denmark, Italy, Portugal and the United Kingdom. We then simulate, under the constraint of constant total net-tax revenue (fiscal neutrality), the effects of various hypothetical tax-transfer-reform basic-income policies: Guaranteed * This work is part of a CHILD (Centre for Household, Income, Labour and Demographic Economics, www.child-centre.it) project. Colombino, project coordinator, developed the microeconometric model and is responsible for the interpretations and opinions expressed. O'Donoghue created datasets for the microeconometric model and performed initial experiments. Narazani and Locatelli worked on datasets and the initial estimation exercises. Narazani performed the recent estimations and simulations. We thank Isilda Shima (at the European Centre for Social Welfare Policy and Research) who contributed under a research contract with the Department of Economics of Turin. We thank two anonymous referees for helpful comments.
Social Science Research Network, 2019
This paper develops analytic results for marginal compensated effects in discrete labor supply mo... more This paper develops analytic results for marginal compensated effects in discrete labor supply models, including a Slutsky equation. The Slutsky equation is aggregate in the sense that it establishes the relationship between the marginal compensated effects of the probability of working and the mean hours of work in terms of the corresponding marginal uncompensated effects. The Slutsky equation differs somewhat from the Slutsky equation in the standard continuous labor supply models. Specifically, the marginal compensated effect of an increase in the wage rate differs from the corresponding effect of a decrease in the wage rate. To illustrate some qualitative properties of the compensated marginal effects we have used an empirical labor supply model to compute numerical compensated (Hicksian) and uncompensated marginal (Marshallian) effects resulting from wage rate changes.
Social Science Research Network, 2010
Using an extensive longitudinal dataset extracted from the Norwegian Prescription Database (NorPD... more Using an extensive longitudinal dataset extracted from the Norwegian Prescription Database (NorPD) containing all prescriptions written in the period January 2004 to June 2007, we selected two particular drugs (chemical substances) used against cholesterol. The two brandname products on the Norwegian markets were Provachol (atc code C10AA03) and Zocor (atc code C10AA01). The generics are Provastatine and Simastatine. The model accounts for taste persistence and is estimated on panel data. We find that prices have a negative impact on transitions in the sense that an increase in the brand price will reduce the transition from generics to brand and likewise an increase in the generic price will reduce the transition from brand to generics.
Public Economics, 2004
In this paper we present some results of a research project to develop and estimate a micro-econo... more In this paper we present some results of a research project to develop and estimate a micro-econometric model of residential choice. The model is applied to a sample of Italian chief towns of district. The choice is assumed to depend on household characteristics, income, structural and environmental characteristics of the dwelling and of the town, local taxes and local expenditure on services and public goods. The model is used for simulating the effects of alternative systems of fiscal decentralisation upon public finance and household behaviour and welfare.
Cambridge University Press eBooks, Feb 21, 2008
RePEc: Research Papers in Economics, Feb 1, 2010
Alternative Basic Income Mechanisms: An Evaluation Exercise with a Microeconometric Model * We de... more Alternative Basic Income Mechanisms: An Evaluation Exercise with a Microeconometric Model * We develop and estimate a microeconometric model of household labour supply in four European countries representative of different economies and welfare policy regimes: Denmark, Italy, Portugal and the United Kingdom. We then simulate, under the constraint of constant total net tax revenue (fiscal neutrality), the effects of various hypothetical taxtransfer reforms which include alternative versions of a Basic Income policy: Guaranteed Minimum Income, Work Fare, Participation Basic Income and Universal Basic Income. We produce indexes and criteria according to which the reforms can be ranked and compared to the current tax-transfer systems. The exercise can be considered as one of empirical optimal taxation, where the optimization problem is solved computationally rather than analytically. It turns out that many versions of the Basic Income policies would be superior to the current system. The most successful policies are those involving non means-tested versions of basic income (Universal or Participation Basic Income) and adopting progressive tax-rules. Ifbesides the fiscal neutrality constraint-also other constraints are considered, such as the implied top marginal top tax rate or the effect on female labour supply, the picture changes: unconditional policies remain optimal and feasible in Denmark and the UK; instead in Italy and Portugal universal policies appear to be too costly in terms of implied top marginal tax rates and in terms of adverse effects on female participation, and conditional policies such as Work-Fare, emerge as more desirable.
RePEc: Research Papers in Economics, 2006
In this paper we describe a software instrument, implemented with GAUSS, to evaluate a tax reform... more In this paper we describe a software instrument, implemented with GAUSS, to evaluate a tax reform in terms of change in household welfare, and in particular in term of Compensating Variation (CV), within a random utility model. The program flow and the program list with comments are supplied.
RePEc: Research Papers in Economics, 2009
The importance of prices, doctor and patient characteristics, and market institutions for the lik... more The importance of prices, doctor and patient characteristics, and market institutions for the likelihood of choosing generic drugs instead of the more expensive original brand-name version were examined. Using an extensive dataset extracted from The Norwegian Prescription Database (NorPD) containing all prescriptions dispensed to individuals in February 2004 and 2006 on 23 different drugs (chemical substances) in Norway, we find strong evidence for the importance of both doctor and patient characteristics for the choice probabilities. The price difference between brand and generic versions and insurance coverage both affect generic substitution. Moreover, controlling for the retail chain affiliation of the dispensing pharmacy, we find that pharmacies play an important role in promoting generic substitution. In markets with more recent entry of generic drugs, the brand-name loyalty proves to be much stronger, giving less explanatory power to our demand model.
RePEc: Research Papers in Economics, Feb 1, 2013
This paper discusses the calculation of compensated choice probabilities in random utility models... more This paper discusses the calculation of compensated choice probabilities in random utility models. The methodology of Compensating Variation and Compensated Choice Probability was developed recently by Dagsvik and Karlstrom (2005). In this paper we demonstrate how one can apply this methodology in practice. In particular, we compute compensated labor supply probabilities and Slutsky elasticities in a particular discrete labor supply mode
We show how a neoclassical labor supply model with optimal decisions for labor force participatio... more We show how a neoclassical labor supply model with optimal decisions for labor force participation and hours of work, derived from first order conditions, can be taken to data even in the presence of a step-wise linear progressive tax system which may imply non-convex budget sets. The estimated model is used to simulate the optimal behavior when the tax system of 2001 is replaced by the less progressive tax system of 2006. The latter tax system implies a lower labor market participation among married women in Norway, a higher working load, given participation, and a more uneven distribution of household income.
RePEc: Research Papers in Economics, Apr 1, 2015
The purpose of this paper is to estimate patients' and doctors' responses to prices when making a... more The purpose of this paper is to estimate patients' and doctors' responses to prices when making a choice between brand name products and generics. We account for the response of pharmacies to government regulation and to prices set by brand name producers. The data from the Norwegian Prescription Database are unique in the sense that we observe prices set by pharmacies as well as by producers. Our results confirm that estimating only the demand side yields biased estimates of consumers' price responses. We find much stronger price responses when demand and supply are jointly estimated.
Labour, Mar 1, 2000
Aggregate evidence has revealed a significant increase in women's labour market participation (es... more Aggregate evidence has revealed a significant increase in women's labour market participation (especially among married women) and a decline in male participation, both in Italy and in all the other OECD countries. This paper empirically tests the relationship between the education and employment status of husbands and wives using the Bank of Italy Survey (1995). The results of our analysis show that employed women are likely to be married to employed men with a higher level of education and higher income. The estimates of the labour supply decisions of wives show that the effect of the unemployment status of husbands is mediated by other factors associated with the family's view of wives working outside home. The response to a husband's unemployment depends significantly on the employment decisions of parents (mothers and mothers-inlaw), a proxy for the couple's attitude towards women's work.
Modern Economy, 2011
To evaluate a tax reform in terms of change in household welfare one possibility is to estimate t... more To evaluate a tax reform in terms of change in household welfare one possibility is to estimate the compensating variation using a suitable model to assess the change in the household utility. When a random utility model is used, the computation of compensating variation is not straightforward, particularly when utility is not linear in household income. It can be carried out using a methodology recently proposed in the literature. In this paper we describe a software instrument, implemented using GAUSS programming language for computing the compensating variation to evaluate the 1991 tax reform introduced in Norway. The program is flexible and adaptable to different tax systems and different reference years.
Basic Income Studies, Jan 20, 2010
We develop and estimate a microeconometric model of household labour supply in four European coun... more We develop and estimate a microeconometric model of household labour supply in four European countries with differing economies and welfare policy regimes: Denmark, Italy, Portugal and the United Kingdom. We then simulate, under the constraint of constant total net-tax revenue (fiscal neutrality), the effects of various hypothetical tax-transfer-reform basic-income policies: Guaranteed * This work is part of a CHILD (Centre for Household, Income, Labour and Demographic Economics, www.child-centre.it) project. Colombino, project coordinator, developed the microeconometric model and is responsible for the interpretations and opinions expressed. O'Donoghue created datasets for the microeconometric model and performed initial experiments. Narazani and Locatelli worked on datasets and the initial estimation exercises. Narazani performed the recent estimations and simulations. We thank Isilda Shima (at the European Centre for Social Welfare Policy and Research) who contributed under a research contract with the Department of Economics of Turin. We thank two anonymous referees for helpful comments.
Atlantic Economic Journal, Sep 1, 2018
The purpose of this paper is to estimate patients/doctors response to prices when making a choice... more The purpose of this paper is to estimate patients/doctors response to prices when making a choice between a brand name product and its generics. We account for how pharmacies respond to government regulation and to prices set by brand name producers. Data is unique in the sense that we observe prices set by pharmacies as well as by producers. Our results confirm that estimating only the demand side yields biased estimates of consumers' price responses. We find much stronger price responses when demand and supply are jointly estimated.
Applied Economics and Finance, Mar 19, 2014
TNF-alpha inhibitors represent one of the most important areas of biopharmaceuticals by sales, wi... more TNF-alpha inhibitors represent one of the most important areas of biopharmaceuticals by sales, with three blockbusters accounting for 8 per cent of total pharmaceutical sale in Norway. Novelty of the paper is to examine, with the use of a unique natural policy experiment in Norway, to what extent the price responsiveness of prescription choices is affected when the identity of the third-party payer changes. The three dominating drugs in this market, Enbrel, Remicade, and Humira, are substitutes, but have had different and varying funding schemes-hospitals and the national insurance plan. A stochastic structural model for the three drugs, covering demand and price setting, is estimated in a joint maximum likelihood approach. We find that doctors are more responsive when the costs are covered by the hospitals compared to when costs are covered by national insurance.
Social Science Research Network, 2018
On survey data from 1999-2001 and 2010-2012 we estimate the demand for commercial sex among Briti... more On survey data from 1999-2001 and 2010-2012 we estimate the demand for commercial sex among British men. We estimate a zero-inflated count model, which takes into account the probability of not participating in the sex market and number of times with a prostitute. We find that sex education in school has a negative and significant role in the demand for paid sex. We also find that men with a typically middle-class income are more likely to buy sex. Travelling abroad or living in London increases the likelihood of British men buying sex.
Social Science Research Network, 2011
TNF-alpha inhibitors represent one of the most important areas of biopharmaceuticals by sales, wi... more TNF-alpha inhibitors represent one of the most important areas of biopharmaceuticals by sales, with three blockbusters accounting for 8 per cent of total pharmaceutical sale in Norway. Novelty of the paper is to examine, with the use of a unique natural policy experiment in Norway, to what extent the price responsiveness of prescription choices is affected when the identity of the third-party payer changes. The three dominating drugs in this market, Enbrel, Remicade, and Humira, are substitutes, but have had different and varying funding schemes-hospitals and the national insurance plan. A stochastic structural model for the three drugs, covering demand and price setting, is estimated in a joint maximum likelihood approach. We find that doctors are more responsive when the costs are covered by the hospitals compared to when costs are covered by national insurance.
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Papers by marilena loatelli