[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/ijm/journl/v2y2009i2p43-54.html
   My bibliography  Save this article

Towards a multi-purpose framework for tax-benefit microsimulation: lessons from EUROMOD

Author

Listed:
  • Herwig Immervoll

    (Social Policy Division, OECD, 2 rue André Pascal, 75775 Paris Cedex 16, France)

  • Cathal O'Donoghue

    (Rural Economy Research Centre, Teagasc, National University of Ireland, Galway)

Abstract
Tax-benefit models provide tools for policy analyses that should enable researchers to focus their attention on formulating policy scenarios and analysing their effects. From the users? and the developers? points of view, numerous characteristics and features are desirable to maximise the model?s usefulness. A model framework that offers generalised components essential for tax-benefit modelling while at the same time providing a large degree of flexibility in defining the specific parameters can be re-used for a multitude of modelling purposes. This paper discusses issues arising in the construction of such a general framework and illustrates possible approaches by reference to the the framework developed for construction of the EUROMOD tax-benefit model. EUROMOD is an integrated tax-benefit microsimulation model covering 15 (pre 2004) countries that are members of the European Union (Immervoll et al, 1999) as well as 4 of the New Member States. Implementing this many tax-benefit systems in one single consistent framework requires a robust yet flexible structure. The framework needs to reflect the basic structural characteristics of tax-benefit systems while leaving enough room for a diversity of particular instruments and rules. This paper outlines the general model framework adopted. We argue that, apart from its direct usefulness for EUROMOD, the framework has far wider applicability as a general approach to static tax-benefit microsimulation modelling.

Suggested Citation

  • Herwig Immervoll & Cathal O'Donoghue, 2009. "Towards a multi-purpose framework for tax-benefit microsimulation: lessons from EUROMOD," International Journal of Microsimulation, International Microsimulation Association, vol. 2(2), pages 43-54.
  • Handle: RePEc:ijm:journl:v:2:y:2009:i:2:p:43-54
    as

    Download full text from publisher

    File URL: http://ima.natsem.canberra.edu.au/IJM/V2_2/IJM_2_2_4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. O'Donoghue, Cathal & Colombino, Ugo & Narazani, Edlira & Locatelli, Marilena & Shima, Isilda, 2008. "Behavioural and welfare effects of basic income policies: a simulation for European countries," EUROMOD Working Papers EM5/08, EUROMOD at the Institute for Social and Economic Research.
    2. repec:bla:econom:v:69:y:2002:i:274:p:229-43 is not listed on IDEAS
    3. Merz, Joachim, 1991. "Microsimulation -- A survey of principles, developments and applications," International Journal of Forecasting, Elsevier, vol. 7(1), pages 77-104, May.
    4. Holly Sutherland, 1991. "Constructing A Tax‐Benefit Model: What Advice Can One Give?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(2), pages 199-219, June.
    5. Redmond,Gerry & Sutherland,Holly & Wilson,Moira, 1998. "The Arithmetic of Tax and Social Security Reform," Cambridge Books, Cambridge University Press, number 9780521632249, September.
    6. O'Donoghue, Cathal & Sutherland, Holly & Immervoll, Herwig, 1999. "An introduction to EUROMOD," EUROMOD Working Papers EM0/99, EUROMOD at the Institute for Social and Economic Research.
    7. Holly Sutherland & David Piachaud, 2000. "How Effective is the British Government's Attempt to Reduce Child Poverty?," Papers inwopa00/6, Innocenti Working Papers.
    8. O'Donoghue, Cathal & Matsaganis, Manos & Bargain, Olivier & Levy, Horacio & Mantovani, D. & Tsakloglou, P. & Mercader-Prats, M. & Baldini, Massimo & Albuquerque, J. & Bosi, P. & Farinha, C. & Rodrigue, 2002. "The impact of means tested assistance in Southern Europe," EUROMOD Working Papers EM6/01, EUROMOD at the Institute for Social and Economic Research.
    9. Atkinson, A. B. & Bouguignon, F. & Chiappori, P. A., 1988. "What do we learn about tax reform from international comparisons? France and Britain," European Economic Review, Elsevier, vol. 32(2-3), pages 343-352, March.
    10. Herwig Immervoll, 2006. "Fiscal Drag – An Automatic Stabiliser?," Research in Labor Economics, in: Micro-Simulation in Action, pages 141-163, Emerald Group Publishing Limited.
    11. Sutherland, H., 1995. "Static Microsimulation Models in Europe: A Survey," Cambridge Working Papers in Economics 9523, Faculty of Economics, University of Cambridge.
    12. Callan, Tim & Sutherland, Holly, 1997. "The impact of comparable policies in European countries: Microsimulation approaches," European Economic Review, Elsevier, vol. 41(3-5), pages 627-633, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. O'Donoghue, Cathal & Immervoll, Herwig, 2001. "Towards a multi purpose framework for tax benefit microsimulation," EUROMOD Working Papers EM2/01, EUROMOD at the Institute for Social and Economic Research.
    2. Sutherland, Holly, 2001. "EUROMOD: an integrated European benefit-tax model: final report," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research.
    3. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
    4. Mantovani, Daniela & Lietz, Christine, 2006. "Lessons from building and using EUROMOD," EUROMOD Working Papers EM5/06, EUROMOD at the Institute for Social and Economic Research.
    5. O'Donoghue, Cathal & Sutherland, Holly & Utili, F., 1999. "Integrating output in Euromod: an assessment of the sensitivity of multi country microsimulation results," EUROMOD Working Papers EM1/99, EUROMOD at the Institute for Social and Economic Research.
    6. Sutherland, Holly, 2001. "Reducing child poverty in Europe: what can static microsimulation models tell us?," EUROMOD Working Papers EM5/01, EUROMOD at the Institute for Social and Economic Research.
    7. Herwig Immervoll & Horacio Levy & José Ricardo Nogueira & Cathal O´Donoghue & Rozane Bezerra de Siqueira, 2005. "The Impact of Brazil´s Tax-Benefit System on Inequality and Poverty," Ibero America Institute for Econ. Research (IAI) Discussion Papers 117, Ibero-America Institute for Economic Research.
    8. Sutherland, Holly & Mantovani, Daniela, 2003. "Social indicators and other income statistics using the EUROMOD baseline: a comparison with Eurostat and National Statistics," EUROMOD Working Papers EM1/03, EUROMOD at the Institute for Social and Economic Research.
    9. Cathal O'Donoghue & Martin Evans, 1998. "Recasting Safety Nets: Reforming Social Assistance in Germany, Ireland and the United Kingdom," Papers WP098, Economic and Social Research Institute (ESRI).
    10. Sutherland, Holly & Immervoll, Herwig & de Vos, Klaas, 2000. "Child poverty and child benefits in the European Union," EUROMOD Working Papers EM1/00, EUROMOD at the Institute for Social and Economic Research.
    11. Cathal O’Donoghue & Holly Sutherland, 1998. "Accounting for the Family: The treatment of marriage and children in European income tax systems," Papers iopeps98/25, Innocenti Occasional Papers, Economic Policy Series.
    12. Lidia CERIANI & Carlo V. FIORIO & Chiara GHIGLIARANO, 2013. "The importance of choosing the data set for tax-benefit analysis," Departmental Working Papers 2013-05, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    13. Eugenio Zucchelli & Andrew M Jones & Nigel Rice, 2012. "The evaluation of health policies through dynamic microsimulation methods," International Journal of Microsimulation, International Microsimulation Association, vol. 5(1), pages 2-20.
    14. van de Ven, J., 2001. "Simulating Cohort Earnings for Australia," Department of Economics - Working Papers Series 780, The University of Melbourne.
    15. Levy, Horacio & Nogueira, José Ricardo & Siqueira, Rozane Bezerra & Immervoll, Herwig & O'Donoghue, Cathal, 2010. "Simulating the impact of inflation on the progressivity of personal income tax in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(4), December.
    16. van de Ven, J., 2001. "Simulating Cohort Demographic Characteristics for Australia," Department of Economics - Working Papers Series 779, The University of Melbourne.
    17. Lidia Ceriani & Carlo V. Fiorio & Chiara Gigliarano, 2013. "The importance of choosing the data set for tax-benefit analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 86-121.
    18. Heiko Müller & Caren Sureth, 2009. "Income tax statistics analysis: A comparison of microsimulation versus group simulation," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 32-48.
    19. Sutherland, Holly & Levy, Horacio & Lietz, Christine, 2006. "A basic income for Europe’s children?," ISER Working Paper Series 2006-47, Institute for Social and Economic Research.
    20. O'Donoghue, Cathal & Immervoll, Herwig, 2002. "Welfare benefits and work incentives: an analysis of the distribution of net replacement rates in Europe using EUROMOD, a multi-country microsimulation model," EUROMOD Working Papers EM4/01, EUROMOD at the Institute for Social and Economic Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijm:journl:v:2:y:2009:i:2:p:43-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jinjing Li (email available below). General contact details of provider: http://www.microsimulation.pub .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.