The siena microsimulation model (sm2) for net-gross conversion of eu-silc income variables
AbstractIn interview surveys collecting information on personal income, the respondents may report income amounts as gross or net of taxes and other deductions. These data must be made homogenous before use for analysis, especially when undertaking comparisons across population groups and countries. The Siena Microsimulation Model (SM2) has been developed as a practical tool providing a robust and convenient procedure for the conversion between net and gross forms of household income. In this paper we describe the logic and structure of the SM2. Starting from data on household and personal income given in different forms, and on the basis of the prevailing tax regime in a country, the SAS routines of the model are designed to estimate full information on income by component, with a breakdown of gross amounts into taxes, social insurance contributions of various types, and net income. Given this specific purpose, SM2 is not meant to be an alternative to general tax-benefit simulation models, but as a complementary tool which those models can usefully exploit. The usefulness of SM2, of course, goes beyond these specific objectives. The distinguishing feature of SM2 is that it can handle diverse tax-benefit regimes using a common logic and a standard set of procedures making it particularly useful for multi-country comparative application; these are explained in the paper in some detail. The immediate context for the development of SM2 has been the requirements of EU-SILC (EU Statistics on Income and Living Conditions). Recently SM2 has been implemented for Italy based on EU-SILC data. The application and some results from it are described. Applications have also been developed for France, Spain and Greece. Selected aspects of these applications are illustrated for France and Spain.
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Bibliographic InfoArticle provided by Interational Microsimulation Association in its journal International Journal of Microsimulation.
Volume (Year): 4 (2011)
Issue (Month): 1 ()
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Web page: http://ima.natsem.canberra.edu.au/index.htm
ECHP; EU-SILC; household income; income components; income surveys; Italian fiscal system; net-gross conversion; SM2; taxable income;
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- Lidia CERIANI & Carlo V. FIORIO & Chiara GHIGLIARANO, 2013.
"The importance of choosing the data set for tax-benefit analysis,"
Departmental Working Papers
2013-05, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Lidia Ceriani & Carlo V. Fiorio & Chiara Gigliarano, 2013. "The importance of choosing the data set for tax-benefit analysis," International Journal of Microsimulation, Interational Microsimulation Association, vol. 1(6), pages 86-121.
- Ceriani, Lidia & Fiorio, Carlo V. & Gigliarano, Chiara, 2013. "The importance of choosing the data set for tax-benefit analysis," EUROMOD Working Papers EM5/13, EUROMOD at the Institute for Social and Economic Research.
- Gabriella Donatiello & Gianni Betti & Paolo Consolini, 2012. "The Construction of Gross Income Variables of Eusilc (Eu Statistics on Income and Living Conditions) in Italy: A Mixed Strategy Using Microsimulation and Administrative Data," Department of Economics University of Siena 652, Department of Economics, University of Siena.
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