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Microreg: A Traditional Tax-Benefit Microsimulation Model Extended To Indirect Taxes And In Kind Transfers

Author

Listed:
  • M Luisa Maitino

    (IRPET (Regional Institute for Economic Planning of Tuscany))

  • Letizia Ravagli

    (IRPET (Regional Institute for Economic Planning of Tuscany))

  • Nicola Sciclone

    (IRPET (Regional Institute for Economic Planning of Tuscany))

Abstract

MicroReg is a tax-benefit microsimulation model, developed by IRPET (Regional Institute for Economic Planning in Tuscany), able to simulate the main fiscal policies for all the Italian Regions. The model is based on the EUROSTAT Survey on Income and Living Conditions (EU-SILC). In its traditional version MicroReg can simulate direct taxes and in-cash transfers, but recently it was extended in two directions. The first extension aims at adding indirect taxes to simulated tax policies, thanks to a statistical matching between EU-SILC and the Italian Household Budget Survey by Istat(National Institute of Statistics (Italy)). To improve the matching, an estimation of the level of expenditure for each EU-SILC household is added to the variables on which the matching is conditioned, by applying the relation between consumption and income estimated on the Bank of Italy Survey of Households Income and Wealth. The second extension aims at including in-kind transfers, in health and education and in household disposable income. The monetary value of in-kind transfers is estimated with the public cost of production by using national and regional administrative data. The allocation of benefits among individuals is done by following the so called "actual consumption approach", both for health and education. This paper describes MicroReg, focusing on the new extensions, and the results of an application to assess the distributive effects of fiscal policies introduced in the last few years in Italy, both on the revenue and on the expenditure side.

Suggested Citation

  • 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.
    • Handle: RePEc:ijm:journl:v10:y:2017:i:1:p:5-38
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    Cited by:

    1. Maria Luisa Maitino & Letizia Ravagli & Nicola Sciclone, 2021. "Le riforme del sistema di imposte e benefici in discussione dopo la pandemia da covid-19," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(2), pages 95-116.
    2. Paolo Brunori & Marisa Luisa Maitino & Letizia Ravagli & Nicola Sciclone, 2021. "Distant and different? Lockdown and inequalities in Italy," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2021(2), pages 39-54.
    3. Paolo Brunori & Maria Luisa Maitino & Letizia Ravagli & Nicola Sciclone, 2019. "The French do it better. The distributive effect of introducing French family fiscal policies in Italy," SERIES 04-2019, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Oct 2019.
    4. 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.
    5. Boscolo, Stefano, 2019. "The contribution of proportional taxes and tax-free cash benefits to income redistribution over the period 2005-2018: Evidence from Italy," EUROMOD Working Papers EM18/19, EUROMOD at the Institute for Social and Economic Research.
    6. Stefano Boscolo, 2022. "The contribution of tax-benefit instruments to income redistribution in Italy," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(2), pages 181-231.
    7. 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.
    8. Stefano Boscolo, 2019. "The Contribution of Proportional Taxes and Tax-Free Cash Benefits to Income Redistribution over the Period 2005-2018: Evidence from Italy," Department of Economics 0152, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".

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    More about this item

    Keywords

    Microsimulation Models; tax-benefit system; indirect taxes; in-kind transfers;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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