This paper reports an exercise to validate EUROMOD output for 2001 by comparing income statistics calculated from the baseline micro-output with comparable statistics from the European Community Household Panel (ECHP). It focuses particularly on some of the income-based common Laeken social indicators. It also compares EUROMOD estimates of changes in these indicators between 1998 and 2001 with similar estimates based on ECHP. The values of many of the indicators - and changes to the indicators - calculated using EUROMOD are close to those shown by the ECHP. Where there are discrepancies these can usually be explained by known differences in the methods or underlying data. Users of EUROMOD should be aware of remaining unavoidable sources of non-comparability across countries, as well as the nature of the simulation process. Nevertheless they can be confident that the baseline provides a good starting point for the analysis of the effects of policy changes on indicators.
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Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number
EM6/05.
Length: Date of creation: 01 Mar 2005 Date of revision: Handle: RePEc:ese:emodwp:em6/05
Note: Income inequality, Poverty statistics, Microsimulation, European Union Contact details of provider: Postal: RAB Butler Building, University of Essex, Wivenhoe Park, Colchester, ESSEX C04 3SQ Phone: +44 (0)1206 872957 Fax: +44 (0)1206 873151 Email: Web page: http://www.iser.essex.ac.uk/research/euromod/ More information through EDIRC
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Find related papers by JEL classification: C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
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