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Experimental and Game Theoretical Analyses of the Unconditional Basic Income

  • Toshiji KawagoeEmail author
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

In this chapter we show the results of economic analyses of the Unconditional Basic Income (UBI). Moral hazard and adverse selection problems are addressed, which may arise under the UBI scheme. As for the moral hazard problem, the Negative Income Tax (NIT) and the UBI are compared in a laboratory experiment. In a setting where the NIT and the UBI are identical, we find that UBI increases labour supply significantly more than NIT. We also find that more individualistic and competitive people increase their labour supply even when the UBI is introduced. The conjecture that the UBI makes people lazier is rejected. As for the adverse selection problem, we apply a simple evolutionary game model in order to check whether the introduction of the UBI promotes freedom and self-maintenance of the people who have a weaker position in the household, such as women, children, people of advanced age, and people with disability. We show that there is an equilibrium where women are willing to marry in order to get a higher income for the household, even if such decisions keep them in their weaker positions.

Keywords

Basic income Negative income tax Moral hazard Adverse selection Evolutionary game 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Department of Complex and Intelligent SystemsFuture University HakodateHakodateJapan

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