Scotland's Kinkiest Families

November 14, 2021

I’ve finally put some of this model out into the world - to almost zero response so far, but that’s OK.

This was originally just a testing exercise. The Budget Constraint generator has always been a great way of ferreting out all the weirdness in a model: it finds all the discontinuities, marginal effective tax rates (METRs) that go the ‘wrong’ way.

Like this one:

Weird Budget Constraint

This shows the gross/net income relationship for a family with 7 children and £270pw in housing costs, living in a council house. So a pretty unusual family, but still.. Both the legacy system (red) and UC (greeen) are shown.

There’s a lot going on here. Key things are:

Category: Blog Tags: Incentives
Scotland's Kinkiest Families - November 14, 2021 - Graham Stark