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Assessing The Impact Of Tax/Transfer Policy Changes On Poverty: Methodological Issues And Some European Evidence

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Author Info
Callan T ()
Walsh J

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Abstract

A method of systematically assessing the 'first-round' impact of tax and transfer policy changes on the income distribution and the incidence of relative income poverty is proposed. It involves the construction of a 'distributionally neutral' policy, which can be approximated by a policy which indexes tax allowances, credits and bands and welfare payment rates in line with a broad measure of income growth. The impact of actual policy changes in five EU countries over the 1998 to 2001 period is then measured against this benchmark, using the EUROMOD tax-benefit model.

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File URL: http://www.iser.essex.ac.uk/publications/working-papers/euromod/em1-06.pdf
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Publisher Info
Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number EM1/06.

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Date of creation: 01 Mar 2006
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Handle: RePEc:ese:emodwp:em1/06

Note: microsimulation, Distributive impact, relative income poverty
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Related research
Keywords: microsimulation; Distributive impact; relative income poverty;

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Find related papers by JEL classification:
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Immervoll H, 2000. "The Impact Of Inflation On Income Tax And Social Insurance Contributions In Europe," EUROMOD Working Papers EM2/00, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Olivier Bargain & Tim Callan, 2007. "Analysing the Effects of Tax-Benefit Reforms on Income Distribution: A Decomposition Approach," IZA Discussion Papers 3078, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Lietz C & Mantovani D, 2006. "Lessons From Building And Using EUROMOD," EUROMOD Working Papers EM5/06, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
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