Abstract
Conventional, static, work-leisure choice theory is unambiguous about the effect of a large increase in the poverty floor provided by government income supplement programs. The theory predicts a decrease in work effort, and this prediction is often used as an argument against imposition of a large scale negative income tax mechanism. This note grants the static theory its static position, but suggests how the addition of a plausible dynamic mechanism might well reverse the prediction with the passage of time. To make the point in a minimal space, an extremely simplified model will be presented. Suppose an individual's work behavior is described by the following model:
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