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The static microsimulation model of the Italian Department of Finance: Structure and first results regarding income and housing taxation

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  • Fernando Di Nicola
  • Giorgio Mongelli
  • Simone Pellegrino

Abstract

In this paper we present a first attempt to develop a representative and flexible static tax-benefit microsimulation model, based on an exact match among a representative sample survey of the Italian income and living conditions in 2009-2010, provided by the Italian Institute of Statistics, and corresponding personal income tax returns, as well as cadastral data of the real estate properties of each individual, provided by the Department of Finance of the Italian Ministry of Economy and Finance on the same tax year. This static tax-benefit model can evaluate tax revenue and the redistributive impact of property and personal income taxation based on income types and levels actually declared with details of tax deductions. It should allow more reliable and detailed results compared to those based only on survey data and incomes declared to interviewers

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  • Fernando Di Nicola & Giorgio Mongelli & Simone Pellegrino, 2015. "The static microsimulation model of the Italian Department of Finance: Structure and first results regarding income and housing taxation," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2015(2), pages 125-157.
    • Handle: RePEc:fan:epepep:v:html10.3280/ep2015-002004
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    4. Gianni Betti & Gabriella Donatiello & Vijay Verma, 2011. "The siena microsimulation model (sm2) for net-gross conversion of eu-silc income variables," International Journal of Microsimulation, International Microsimulation Association, vol. 4(1), pages 35-53.
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    Cited by:

    1. Francesca Greselin & Simone Pellegrino & Achille Vernizzi, 2021. "The Zenga Equality Curve: A New Approach to Measuring Tax Redistribution and Progressivity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 950-976, December.
    2. Stefano Boscolo, 2021. "On the horizontal inequity effect of the erosion of the pit base: the case of Italy," Politica economica, Società editrice il Mulino, issue 1, pages 43-82.
    3. Andrea Albarea & Michele Bernasconi & Cinzia Di Novi & Anna Marenzi & Dino Rizzi & Francesca Zantomio, 2015. "Accounting for Tax Evasion Profiles and Tax Expenditures in Microsimulation Modelling. The BETAMOD Model for Personal Income Taxes in Italy," International Journal of Microsimulation, International Microsimulation Association, vol. 8(3), pages 99-136.
    4. Ali Bayar & Barbara Bratta & Silvia Carta & Paolo Di Caro & Marco Manzo & Carlo Orecchia, 2021. "Assessing the effects of VAT policies with an integrated CGE-microsimulation approach: evidence on Italy," Working Papers wp2021-14, Ministry of Economy and Finance, Department of Finance.
    5. Davide Azzolini & Martina Bazzoli & Silvia De Poli & Carlo Fiorio & Samuele Poy, 2017. "Developing and Validating Regional Microsimulation Models. TREMOD: The Tax-Benefit Model of the Italian Province of Trento," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(1), pages 5-33.
    6. Daniela Mantovani & Simone Pellegrino & Achille Vernizzi, 2020. "A note on the maximum value of the Kakwani index," Empirical Economics, Springer, vol. 58(2), pages 869-874, February.
    7. Bacchini Fabio & Baldazzi Barbara & De Carli Rita & Di Biagio Lorenzo & Savioli Miria & Sorvillo Maria Pia & Tinto Alessandra, 2021. "The Evolution of the Italian Framework to Measure Well-Being," Journal of Official Statistics, Sciendo, vol. 37(2), pages 317-339, June.
    8. M Luisa Maitino & Letizia Ravagli & Nicola Sciclone, 2017. "Microreg: A Traditional Tax-Benefit Microsimulation Model Extended To Indirect Taxes And In Kind Transfers," International Journal of Microsimulation, International Microsimulation Association, vol. 10(1), pages 5-38.
    9. Simone Pellegrino & Achille Vernizzi, 2018. "Decomposing the Redistributive Effect of Taxation to Reveal Axiom Violations," Working papers 049, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    10. Fernando Di Nicola & Melisso Boschi & Giorgio Mongelli, 2017. "Effective marginal and average tax rates in the 2017 Italian tax-benefit system," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(3), pages 67-90.
    11. Fernando Di Nicola & Melisso Boschi & Giorgio Mongelli, 2017. "Effective marginal and average tax rates in the 2017 Italian tax-benefit system," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(3), pages 67-90.
    12. Dalila De Rosa & Gloria Di Caprera & Francesco Figari & Carlo Fiorio & Pasquale Giacobbe & Marco Manzo & Elena Miola & Giorgio Mongelli & Chiara Subrizi, 2023. "L’Assegno Unico e Universale e la revisione dell’IRPEF nel 2022: un’analisi di equità ed efficienza per famiglie di lavoratori dipendenti," Working Papers wp2023-19, Ministry of Economy and Finance, Department of Finance.
    13. Francesca Greselin & Simone Pellegrino & Achille Vernizzi, 2017. "Lorenz versus Zenga Inequality Curves: a New Approach to Measuring Tax Redistribution and Progressivity," Working papers 046, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    14. Paolo Di Caro, 2018. "Redistribution in real-world PIT: Evidence from Italian tax records," Working Papers wp2018-2, Ministry of Economy and Finance, Department of Finance.
    15. Stefano Boscolo, 2020. "On the Horizontal Inequity Effect of the Erosion of the PIT Base: The Case of Italy," Department of Economics 0176, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    16. Paolo Di Caro, 2017. "Analisi distributiva dell?IRPEF utilizzando i microdati di fonte fiscale," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(1), pages 35-59.
    17. Elena Miola & Marco Manzo, 2021. "A Tax-Benefit Microsimulation Model for Personal Income Taxation in Italy," Working Papers wp2021-10, Ministry of Economy and Finance, Department of Finance.
    18. Paolo Di Caro, 2017. "The contribution of tax statistics for analysing regional income disparities in Italy," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-27, March.
    19. Stefano Boscolo, 2022. "The contribution of tax-benefit instruments to income redistribution in Italy," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(2), pages 181-231.
    20. Stefano Boscolo, 2019. "Quantifying the Redistributive Effect of the Erosion of the Italian Personal Income Tax Base: A Microsimulation Exercise," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(2), pages 39-80.

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    More about this item

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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