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Developing and Validating Regional Microsimulation Models. TREMOD: The Tax-Benefit Model of the Italian Province of Trento

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  • Davide Azzolini
  • Martina Bazzoli
  • Silvia De Poli
  • Carlo Fiorio
  • Samuele Poy

Abstract

A large number of microsimulation models have been developed in Italy over the past years. Only few of them have been created to study specific regional contexts. This paper illustrates the development and validation of TREMOD, a new "static" tax-benefit microsimulation model for the province of Trento. TREMOD is based on the EUROMOD platform and is proposed as an ex-ante evaluation model applicable to local taxation and welfare policies. The main strength of TREMOD is the high quality of the data used. The input database has been obtained by matching data from a local representative survey on households? life conditions with administrative data on individual income tax returns. This aspect is one of the main strengths of TREMOD compared with other experiences in microsimulation modelling. As shown in this paper, the combination of survey and administrative data yields substantial gains in simulation precision.

Suggested Citation

  • 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.
    • Handle: RePEc:fan:epepep:v:html10.3280/ep2017-001001
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    Cited by:

    1. Stefano Boscolo & Giovanni Gallo, 2021. "The Struggle of Being Poor and Claimant: Evidence on the Non-Take-Up of Social Policies in Italy," Center for the Analysis of Public Policies (CAPP) 0174, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    2. 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.
    3. 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.
    4. 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.
    5. 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

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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