Documentation of the Finance Ministry Tax-Benefit Microsimulation Model for the Polish Economy
AbstractThis paper presents the tax-benefit microsimulation model for the Polish economy developed at the Polish Ministry of Finance. The tool has been designed to enable the ex ante regulatory impact assessment of fiscal and social policy. Proposed regulatory changes are evaluated along two dimensions – financial and distributional. As of yet, the model is of a static type and is able to capture only first round (on impact) effects. However, by employing the nearest neighbour algorithm, behavioural responses in terms of consumption patterns have been incorporated. The microsimulation model is also to be supplemented with a labour supply module and eventually integrated with a CGE-type model, so as to quantify the macroeconomic consequences of tax and benefit policy design. This paper describes the scheme of the model, the underlying model assumptions, goodness of fit to the data and some examples of application.
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Bibliographic InfoPaper provided by Ministry of Finance in Poland in its series Working Papers with number 12.
Length: 46 pages
Date of creation: 04 May 2012
Date of revision:
Microsimulation; regulatory impact assessment; tax and benefit policy;
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
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