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Modelling Behavioural Response in EUROMOD

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  • Klevmarken, N. A.

Abstract

The EUROMOD Preparatory Project examined a number of aspects of the technical feasibility of constructing a Europe-wide tax-benefit model. This paper reports on the issues relating to incorporating behavioural response into the model. It explores the problems and prospects of modelling changes in behaviour within the static microsimulation approach, using cross-sectional data. In the case of labour supply it concludes that not only are there problems related to the timing of responses using the static approach, but also a lack of comparable studies (or data) across all 15 countries. A dynamic approach using panel data has more potential and should be explored for a small group of countries. In the case of consumer demand, behavioural adjustment can be assumed to be quick and there is some potential for including demand responses in EUROMOD

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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 9720.

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Date of creation: Jul 1997
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Handle: RePEc:cam:camdae:9720

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Web page: http://www.econ.cam.ac.uk/index.htm

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Cited by:
  1. repec:hal:wpaper:halshs-00590863 is not listed on IDEAS
  2. John Creedy & Guyonne Kalb, 2005. "Behavioural Microsimulation Modelling for Tax Policy Analysis in Australia: Experience and Prospects," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(1), pages 73-110, March.
  3. John Creedy & Guyonne Kalb, 2005. "Behavioural Microsimulation Modelling With the Melbourne Institute Tax and Transfer Simulator(MITTS) : Uses and Extensions," Department of Economics - Working Papers Series 932, The University of Melbourne.
  4. Immervoll, Herwig & O'Donoghue, Cathal, 2001. "Towards a multi purpose framework for tax benefit microsimulation," EUROMOD Working Papers EM2/01, EUROMOD at the Institute for Social and Economic Research.
  5. Li, Jinjing & O'Donoghue, Cathal, 2012. "A methodological survey of dynamic microsimulation models," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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