We provide a quantitative evaluation of the impact of Universal Basic Income (UBI) as an alternative to the existing system of means-tested transfers. We explore varying levels of UBI generosity, paired with different strategies to finance it. All the reforms we consider result in welfare losses for a huge majority of initial households. Moreover, these losses are increasing in UBI generosity. A reform financed with con-sumption taxes implies lower efficiency losses than reforms financed with income taxes, but fewer indi-viduals benefit from it. (c) 2023 Elsevier B.V. All rights reserved.
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CINTESIS Ctr Hlth Technol & Serv Res, Rua Dr Placido da Costa S-N, P-4200450 Oporto, PortugalCINTESIS Ctr Hlth Technol & Serv Res, Rua Dr Placido da Costa S-N, P-4200450 Oporto, Portugal