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Towards A Multi-Purpose Framework For Tax-Benefit Microsimulation

Author

Listed:
  • Herwig Immervoll

    (University of Cambridge; European Centre for Social Welfare Policy & Research - Vienna)

  • Cathal O'Donoghue

    (University of Cambridge; National University of Ireland - Galway)

Abstract

This paper introduces a generalised model building platform (MMEANS) for implementing and using tax-benefit microsimulation models. It is designed to aid in the construction of single- and multi-country tax- benefit models by providing all essential components and a system by which these can be parameterised and combined into a full model. We explain the conceptual and computational issues arising in the design and development of MMEANS. One application of the software has been to construct EUROMOD, a 15 country European tax-benefit model (Immervoll et al., 1999; Sutherland, 2001). However, we argue that, apart from its direct usefulness for this model, MMEANS can be used as a general software tool for microsimulation model building.

Suggested Citation

  • Herwig Immervoll & Cathal O'Donoghue, 2003. "Towards A Multi-Purpose Framework For Tax-Benefit Microsimulation," Computational Economics 0302002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpco:0302002
    Note: Type of Document - ; figures: included. EUROMOD web-site:
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    References listed on IDEAS

    as
    1. 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.
    2. O'Donoghue, Cathal & Sutherland, Holly, 1999. "Accounting for the Family in European Income Tax Systems," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(5), pages 565-598, September.
    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. Joachim Merz, 1995. "MICSIM - Concept, Developments and Applications of a PC-Microsimulation Model for Research and Teaching," FFB-Discussionpaper 14, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    6. Anders Klevmarken, 2022. "Modeling Behavioural Response in EUROMOD," International Journal of Microsimulation, International Microsimulation Association, vol. 15(1), pages 89-96.
    7. Immervoll, Herwig & de Vos, Klaas & Berger, Frederic & Borsenberger, Monique & Lumen, Julie & Scholtus, Bertrand, 2001. "The Impact of Tax-Benefit Systems on Low-Income Households in the Benelux Countries. A Simulation Approach Using Synthetic Datasets," EUROMOD Working Papers EM3/01, EUROMOD at the Institute for Social and Economic Research.
    8. Cathal O'Donoghue, 2001. "Dynamic Microsimulation: A Methodological Survey," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 4(2), December.
    9. 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.
    10. Redmond,Gerry & Sutherland,Holly & Wilson,Moira, 1998. "The Arithmetic of Tax and Social Security Reform," Cambridge Books, Cambridge University Press, number 9780521632249, January.
    11. 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.
    12. Holly Sutherland & David Piachaud, 2000. "How Effective is the British Government's Attempt to Reduce Child Poverty?," Papers inwopa00/6, Innocenti Working Papers.
    13. Bourguignon, F. & O'Donoghue, C. & Sastre-Descals, J. & Spadara, A. & Utili, F., 1997. "Eur3: A Prototype European Tax-Benefit Model," Cambridge Working Papers in Economics 9723, Faculty of Economics, University of Cambridge.
    14. 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.
    15. Herwig Immervoll, 2006. "Fiscal Drag – An Automatic Stabiliser?," Research in Labor Economics, in: Micro-Simulation in Action, pages 141-163, Emerald Group Publishing Limited.
    16. Sutherland, H., 1995. "Static Microsimulation Models in Europe: A Survey," Cambridge Working Papers in Economics 9523, Faculty of Economics, University of Cambridge.
    17. Hancock, Ruth, 1997. "Computing Strategy for a European Tax-Benefit Model," Cambridge Working Papers in Economics 9724, Faculty of Economics, University of Cambridge.
    18. O'Donoghue, Cathal & Immervoll, Herwig, 2001. "Imputation of gross amounts from net incomes in household surveys: an application using EUROMOD," EUROMOD Working Papers EM1/01, EUROMOD at the Institute for Social and Economic Research.
    19. Julian McCrae, 1999. "The Development and Uses of Tax and Benefit Simulation Models," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 2(1), January.
    20. 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.
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    Cited by:

    1. Martin Spielauer, 2007. "Dynamic microsimulation of health care demand, health care finance and the economic impact of health behaviours: survey and review," International Journal of Microsimulation, International Microsimulation Association, vol. 1(1), pages 35-53.
    2. Morawski, Leszek & Levy, Horacio & Myck, Michal, 2008. "Alternative tax-benefit strategies to support children in Poland," EUROMOD Working Papers EM3/08, EUROMOD at the Institute for Social and Economic Research.
    3. 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.
    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.

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    More about this item

    Keywords

    Microsimulation; Tax-Benefit Model; European Union;
    All these keywords.

    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
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software

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