Housing subsidisation in the Netherlands; measuring its distortionary and distributional effects

This paper measures the distortionary and distributional effects of housing subsidies. The results are discussed in the light of the main justifications for subsidising housing, i.e. the merit-good argument, external effects and the distribution motive. Our measurements reveal some patterns of subsidisation that seem difficult to justify on these grounds. This applies especially to the differences between subsidisation of rental and owner-occupied housing, the differences between mortgage- and equity-financed ownership and the increase of relative subsidisation above a certain income level.

Measuring lifetime redistribution in Dutch collective arrangements

This paper assesses how the system of Dutch collective arrangements redistributes between the rich and the poor. It incorporates the full life cycle in the measurements, rather than only the annual effects, and includes a larger part of the arrangements than is usually the case. The measurements on redistribution are carried out using the level of educational attainment to classify the population. For an average, representative person of each level of education we measure, in terms of present values, the average net benefit from government. The results show that the net benefits are positive for the lower levels of education and negative for the higher levels. The figures indicate a sizable redistribution from the rich to the poor and a significant reduction of welfare inequality. The net effect on income inequality is, however, substantially smaller than when it is measured on an annual basis.

Immigration and the Dutch economy

For some time now, immigration has been high on the national and international agenda. In addition to the legal, humanitarian and social aspects, the economic impact of immigration is receiving increasing attention. Read also the accompanying press release .What costs and benefits of immigration accrue to the host country? How can immigration and integration policies be modified so as to improve the balance? Is immigration an effective instrument in alleviating the burden of ageing? What can we learn from traditional immigration countries like Australia, Canada and the United States? The international economic literature is not always conclusive in answering the questions raised. Much depends on the specific circumstances and institutions in the host country. This study focuses on the Netherlands as a host country for immigrants. Employing methods extracted from the literature, in combination with data on the Dutch economy, we assess the impact of immigration on the labour market, the public sector and the physical environment. The results may contribute to the debate on immigration and integration policy both in the Netherlands and at the European level.

Ageing and the sustainability of Dutch public finances

The ageing of the population jeopardises the sustainability of public finances in the Netherlands. The doubling of the ratio between the number of retirees and the number of workers destroys the balance between future public expenditure and tax revenues. Read also the accompanying press release .Indeed, the increase in expenditure on public pensions and health and long-term care will outweigh the increase in tax revenues. Budgetary reforms are therefore necessary in order to avoid that future generations will have to raise taxes or economize on public expenditure. Reforms in the field of social security of the last few years are a step in the right direction, but are insufficient. In particular, the decline of interest rates and the reduced wealth of pension funds have worsened the sustainability of public finances. The effects of reforms on the intergenerational balance are important for the question which further reforms are most attractive.