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Impact assessment of alternative reforms of Child Allowances using RUSMOD the static tax-benefit microsimulation model for Russia

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  • Daria Popova

    (European University Institute, Department of Social and Political Sciences)

Abstract

RUSMOD is a static tax-benefit microsimulation model for Russia. The model can be used for ex post and ex ante evaluation of reforms of personal income taxation and social benefits in Russia. In addition, being compatible with EUROMOD, the Russian model is suitable for simulation of cross-country policy transfers. The aim of this paper is to shed light on various aspects of the model. It discusses specific problems arising in the evaluation of unreported income and benefits non-take up in Russia. The final estimates of poverty and inequality from RUSMOD are very close to those based on National accounts; hence, the model can be seen as a reliable tool for evaluating the current performance of the Russian tax-benefit system and the distributive impact of potential tax-benefit reforms. Then the paper provides an example of application of the model an analysis of alternative scenarios for improving the design of child allowances in Russia. Currently, this benefit has a poor targeting performance and varies across regions of Russia in terms of design and generosity, which raises serious equity concerns. Redirecting these resources to the poor by means of better targeting and raising the benefit amounts brings about significant improvements in overall and child poverty indicators even at the current level of spending. The most sizable impact on poverty is achieved by implementing the unified national design of the program.

Suggested Citation

  • Daria Popova, 2013. "Impact assessment of alternative reforms of Child Allowances using RUSMOD the static tax-benefit microsimulation model for Russia," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 122-156.
    • Handle: RePEc:ijm:journl:v:1:y:2013:i:6:p:122-156
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    References listed on IDEAS

    as
    1. Irina Denisova & Stanislav Kolenikov & Ksenia Yudaeva, 2000. "Child Benefits and Child Poverty," Working Papers w0006, Center for Economic and Financial Research (CEFIR).
    2. André Decoster, 2005. "How progressive are indirect taxes in Russia?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 705-729, October.
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    Citations

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    Cited by:

    1. Marina Kolosnitsyna & Anna Philippova, 2017. "Family Benefits and Poverty: The Case of Russia," HSE Working papers WP BRP 03/PSP/2017, National Research University Higher School of Economics.
    2. Nicholas-James Clavet & Luca Tiberti & Marko Vladisavljevic & Jelena Zarkovic Rakic & Aleksandra Anic & Gorana Krstic & Sasa Randelovic, 2017. "Reduction of child poverty in Serbia: Improved cash-transfers or higher work incentives for parents?," Working Papers PMMA 2017-04, PEP-PMMA.
    3. Kazakova, Yuliya, 2019. "Childcare availability and maternal labour supply in Russia," ISER Working Paper Series 2019-11, Institute for Social and Economic Research.
    4. Luis F. Lopez-Calva & Nora Lustig & Mikhail Matytsin & Daria Popova, 2017. "Who Benefits from Fiscal Redistribution in the Russian Federation?," Commitment to Equity (CEQ) Working Paper Series 39, Tulane University, Department of Economics.
    5. Philippova, Anna & Kolosnitsyna, Marina, 2018. "Child benefits’ impact on poverty: Multivariate probit estimates," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 52, pages 62-90.
    6. Kolosnitsyna, Marina G. (Колосницына, Марина) & Philippova, Anna V. (Филиппова, Анна), 2017. "Child Benefits and Poverty: The Case of Russia [Детские Пособия И Бедность В России]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 118-153, August.

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    More about this item

    Keywords

    tax-benefit policy; microsimulation; regional policies; Russia;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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