Tax-benefit microsimulation models are frequently used to analyse the distributional, budgetary and behavioural effects of social and fiscal policies in a period t* using data from some previous period that have been adjusted ("aged") to approximate the population in period t*. This paper considers which types of data adjustments are necessary and appropriate and discusses issues and limitations that affect the scope and interpretation of results based on aged data. It presents a simple conceptual framework for thinking about different types of data adjustments and illustrates the mechanics of ageing procedures in a case study using the EUROMOD tax-benefit model in conjunction with detailed Finnish household micro-data from two periods (1996 and 1998). The case study evaluates the performance of one particular ageing technique by comparing results from the 1998 dataset with those derived from aged 1996 data.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number
em7/05.
Find related papers by JEL classification: C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
This paper has been announced in the following NEP Reports:
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.)