In this paper we examine the desirability of subsidizing child care expenditures in a model where parents can choose both the quantity and the quality of child care services they purchase in the market. Our vehicle of analysis is a Mirrleesian optimal tax framework where child care services not only enable parents to work, but also contribute to children’s formation of human capital. In addition, there are externalities related to the parents’ choice of child care arrangements for their offspring. Using a quantitative simulation model calibrated to the US economy, we evaluate the relative merits of some the most common forms of child care subsidies (tax deductions, tax credits, and opting-out public provision schemes) in terms of their effectiveness in alleviating the distortions associated with income taxation and increasing the quality of child care chosen by parents.

中文翻译：

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托儿补贴、质量和最佳所得税

在本文中，我们研究了在一个模型中补贴儿童保育支出的可取性，在该模型中，父母可以选择他们在市场上购买的儿童保育服务的数量和质量。我们的分析工具是 Mirrleesian 最优税收框架，其中托儿服务不仅使父母能够工作，而且有助于儿童人力资本的形成。此外，父母为子女选择托儿安排也存在外部性。使用针对美国经济校准的定量模拟模型，我们评估了一些最常见的儿童保育补贴形式（税收减免、税收抵免、