Accessible Unlicensed Requires Authentication Published by De Gruyter November 15, 2017

Basic Income in Germany: Proposals for Randomised Controlled Trials using Nudges

Alexander Spermann
From the journal Basic Income Studies

Abstract

The killer argument in the German Policy debate is the fiscal one: we cannot afford a universal basic income (UBI). Fiscal effects are calculated by applying standard microsimulation and general computable equilibrium models. While these empirical models are useful for ex-ante evaluations of marginal reforms, the introduction of a basic income scheme is a fundamental reform associated with behavioural responses that are only partially captured by standard empirical models. Therefore, the proposed randomised controlled trials using nudges will provide more insights into the German institutional setting.

JEL Classification: C 63; C 93; J22

Acknowledgements

The author is grateful for comments by two anonymous referees, Philippe Van Parijs and Eduardo Suplicy, as well as participants of the 16th BIEN Congress at Sogang University in Seoul (2016) and seminar participants at the University of Oldenburg and the Cologne Institute for Economic Research.

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Published Online: 2017-11-15

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