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Evaluating the economic effects of income security reforms in Switzerland: an integrated microsimulation - computable general equilibrium approach

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  • Müller, Tobias

Abstract

This paper analyzes the economic consequences of various reforms of the Swiss tax-benefit system using a framework which integrates an econometrically estimated microsimulation model of labor supply, a tax-benefit module, and a computable general equilibrium (CGE) model. By contrast to conventional microsimulation exercises, this integrated framework accounts for feedback effects arising in particular from the endogenization of wage rates and from the consistent treatment of the government's budget constraint. Compared to conventional CGE models, this framework provides a much more detailed representation of household income distribution and labor supply behavior. The reform scenarios considered in this paper include different versions of basic income, participation income and low-wage subsidy schemes.

Suggested Citation

  • Müller, Tobias, 2004. "Evaluating the economic effects of income security reforms in Switzerland: an integrated microsimulation - computable general equilibrium approach," MPRA Paper 111919, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111919
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    References listed on IDEAS

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    Cited by:

    1. Bourguignon, François & Bussolo, Maurizio, 2013. "Income Distribution in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1383-1437, Elsevier.
    2. Stefan Boeters & Michael Feil, 2009. "Heterogeneous Labour Markets in a Microsimulation–AGE Model: Application to Welfare Reform in Germany," Computational Economics, Springer;Society for Computational Economics, vol. 33(4), pages 305-335, May.
    3. Pereira, Matheus W. Gomes & Teixeira, Erly Cardoso & Gurgel, Ângelo Costa, 2009. "Economic Loss to the Brazilian Regions Due to the Doha Round Failure," Conference papers 331848, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Florian Chatagny & Marko Koethenbuerger & Michael Stimmelmayr, 2017. "Introducing an IP license box in Switzerland: quantifying the effects," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 927-961, December.
    5. repec:ilo:ilowps:385551 is not listed on IDEAS
    6. Samir Cury & Euclides Pedrozo, 2016. "Cash Transfer Policies, Taxation and the Fall in Inequality in Brazil An Integrated Microsimulation-CGE Analysis [equilibrium model, microsimulation model, Brazil. Classification-JEL: C68, D58, I38," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 55-85.
    7. Arntz, Melanie & Boeters, Stefan & Gurtzgen, Nicole, 2006. "Alternative approaches to discrete working time choice in an AGE framework," Economic Modelling, Elsevier, vol. 23(6), pages 1008-1032, December.
    8. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2008. "Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation," Economic Modelling, Elsevier, vol. 25(3), pages 422-439, May.
    9. Anker, Richard,, 2006. "A new methodology for estimating internationally comparable poverty lines and living wage rates," ILO Working Papers 993855513402676, International Labour Organization.
    10. Jacopo Zotti & Rosita Pretaroli & Francesca Severini & Claudio Socci & Giancarlo Infantino, 2020. "Employment incentives and the disaggregated impact on the economy. The Italian case," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 993-1032, October.
    11. Colombo, Giulia, 2008. "Linking CGE and Microsimulation Models: A Comparison of Different Approaches," ZEW Discussion Papers 08-054, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Social security reform; basic income; microsimulation; CGE model; income distribution;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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